A Compensating Wage Differential Is a Wage Difference That

question 14

Multiple Choice

A compensating wage differential is a wage difference that

• A) makes up for the high risk or poor working conditions of a job.
• B) results because of women and minorities being paid less.
• C) leads to more risks taken on the job.
• D) is attributable to different demands for labor.
• E) is due to discrimination.

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Definitions:

High-Paying Occupations

Jobs that offer wages significantly above the average for all occupations.

Domestic Output

The aggregate monetary value of goods and services created within a country's borders throughout a specified period.

Discrimination Coefficient

A measure used to quantify the extent to which prices are adjusted based on customer characteristics in markets where price discrimination occurs.

African Americans

A racial or ethnic group in the United States characterized by an ancestry linked to Africa, particularly sub-Saharan Africa.