Which of the Following Compensation Possibilities Is NOT Permissible Under

question 13

Multiple Choice

Which of the following compensation possibilities is NOT permissible under the Equal Pay Act?

• A) Paying a man more than a woman when they are performing the same job in the same organization
• B) Enforcing a seniority plan that pays a woman more per year if she has been with the company longer than a man
• C) Paying a male employee more than a female employee if he has more responsibility and more job duties than she does
• D) Paying a woman more than a man if she is living in a different geographical region in which the cost of living is considerably more than the region in which the male employee is living

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Definitions:

Diminishing Returns

The decrease in the marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, while other factors are kept constant.

Average Cost

The total cost of production divided by the number of goods produced.

Marginal Cost

Marginal cost is the change in total cost that arises when the quantity produced is incremented by one unit; it is the cost of producing one more unit of a good.

Marginal Productivity

The additional output that can be produced by adding one more unit of a specific input, holding all other inputs constant.