Using a Compensating Differential Wage Theory,some Individuals Earn More Than

question 82

Multiple Choice

Using a compensating differential wage theory,some individuals earn more than others because workers

• A) who earn more are more productive.
• B) need to earn more to be willing to accept dangerous working conditions.
• C) need to earn more to be willing to accept a safe indoor job.
• D) who are more educated and better trained are able to earn more than the equilibrium wage.
• E) who earn more tend to be concentrated in a single occupation.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent and salaries.

Variable Departmental Costs

Costs that vary directly with the level of output or activity within a specific department of a company.

Incremental Profit

The additional profit derived from making changes to the business operations, such as increasing production or sales.

Cash Payback Period

The duration of time it takes for an investment to generate enough cash flow to recover its initial cost.