On Average, Electricians Who Work on Dangerous High-Voltage Power Lines

question 330

Multiple Choice

On average, electricians who work on dangerous high-voltage power lines earn more per hour than similarly skilled electricians who don't work on dangerous high-voltage power lines. The difference in pay is attributed to

• A)the marginal product of labor.
• B)the marginal product of capital.
• C)diminishing marginal returns.
• D)a compensating differential.

---

Definitions:

Production Costs

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overheads.

Central Bank

A nation's principal monetary authority, which regulates the money supply and interest rates in pursuit of economic objectives.

Money Supply

The cumulative total of monetary resources within an economy at a specific period.

Unemployment Rate

The rate of joblessness among individuals in the labor force who are actively seeking work.