Which of the Following Comparisons Best Illustrates a Compensating Differential

question 484

Multiple Choice

Which of the following comparisons best illustrates a compensating differential?

• A)John's wage is higher than Jane's because the value of John's marginal product is higher than Jane's.
• B)Karl's wage is higher than Kay's because Karl is very personable, and Kay is very gruff.
• C)Beth's wage is higher than Bill's because Beth's job may cause long-term health problems, and Bill's job will not impair his health.
• D)All of the above are good illustrations of compensating differentials.

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Definitions:

Recordkeeping

The practice of maintaining and preserving records or documents detailing an organization's or individual's activities and transactions.

Bronze Metallurgy

The practice and knowledge involved in producing bronze, an alloy of copper and tin, used in tools, weapons, and sculptures in ancient times.

Warfare

The engagement in or activities associated with armed conflict between countries or groups.

Farming

The practice of cultivating plants and livestock to produce food, fiber, medicinal plants, and other products to sustain and enhance life.