Philip Is an Average Contractor in Town, and He Earns

question 159

Multiple Choice

Philip is an average contractor in town, and he earns $40,000 a year. Billy is the best contractor in town, and he earns $480,000 a year. Philip's contracting services

• A)are valued more by the market relative to Billy's and that explains why his income is higher than Billy's.
• B)are valued less by the market relative to Billy's and that explains why his income is higher than Billy's.
• C)are valued less by the market relative to Billy's and that explains why his income is lower than Billy's.
• D)are more expensive because he receives a compensating differential.

---

Definitions:

Honeyguides

A group of birds known for their unique behavior of leading humans or other animals to beehives, where they feed on the wax and bee larvae.

Ectoparasites

Parasites that live on the external surface of a host, such as lice or fleas, often causing irritation, disease, or other health issues.

Reciprocity

A social exchange principle where benefits are returned by those who receive them, fostering mutual cooperation.

Vampire Bats

Species of bats known for their unique feeding habit of consuming blood from other animals.