Lower-Paid Workers Often Seem to Have Less Desirable Working Conditions

question 37

Multiple Choice

Lower-paid workers often seem to have less desirable working conditions as well because:

• A)lower-paid workers tend to have proportionately greater fringe benefits.
• B)employers discriminate against unskilled workers
• C)the compensating differential for skill often outweighs the compensating differential for poor working conditions
• D)the compensating differential for poor working conditions often outweighs the compensating differential for skill

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Definitions:

Greater Quantity

A higher amount or number of something, usually used in reference to the production or supply of goods.

Comparative Advantage

A principle stating that if a country produces a good at a lower opportunity cost than another, it has a comparative advantage.

Opportunity Costs

The expense incurred from not selecting the subsequent preferable choice when a decision is made.

Comparative Advantage

The ability of a country or entity to produce a good or service at a lower opportunity cost than others, enabling trade benefits.