Sam and Bob Have the Same Educational Background

question 53

Multiple Choice

Sam and Bob have the same educational background.Both have been policemen in Calgary for 10 years.Sam works from 11 P.M.until 7 A.M. ,and Bob works from 7 A.M.until 3 P.M.Sam's salary is $800 per month,which is higher than Bob's salary.This example illustrates a wage disparity due to:

• A) efficiency wages.
• B) market power.
• C) compensating differentials.
• D) discrimination.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at each price level.

Hot-Dog Stand

A small-scale food retail outlet specializing in selling hot dogs, often found at busy street locations, events, or fairs.

Reservation Price

The reservation price is the maximum price that a consumer is willing to pay for a good or service or the minimum price a seller is willing to accept.

Barbara Streisand CDs

Physical compact discs containing music recorded by the American singer, actress, and filmmaker Barbara Streisand.