Which Theory Supports the Idea That Coal Mining Should Be

question 44

Multiple Choice

Which theory supports the idea that coal mining should be paid more than office clerical work?

• A) Signaling
• B) Marginal productivity
• C) Efficiency wage
• D) Compensating differentials

---

Definitions:

Pure Play

A company that focuses exclusively on a single product or service area.

Risk Characteristics

The inherent features of an investment that determine its potential return and the likelihood of loss.

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, typically associated with government bonds.

Market Risk Premium

The extra return that investors require to hold a risky market portfolio instead of risk-free assets.