One Implication of the Theory of Compensating Differentials Is That

question 24

Multiple Choice

One implication of the theory of compensating differentials is that jobs in states with high income tax rates are likey to

• A)be associated with more fringe benefits.
• B)be associated with fewer fringe benefits.
• C)pay the same wage and offer the same fringe benefits package as the same jobs in lower-tax states.
• D)have worse working conditions.
• E)be seasonal in nature.

---

Definitions:

Attractiveness

The quality of being pleasing or appealing to the senses, particularly in a physical or aesthetic sense.

Propinquity Effect

The tendency for people to form close relationships with those who are geographically close to them.

Attracted

A feeling or response of being drawn towards someone or something due to their qualities, appearance, or characteristics.

Evolutionary History

The record of biological changes and adaptation in organisms over time, shaping their genetic and phenotypic characteristics.