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:

Bystander-Calculus Model

A theoretical model explaining the decision-making process individuals go through in deciding whether to intervene in an emergency situation, weighing personal costs and benefits.

Crucial Stage

A critical or pivotal phase in a process or series of events where important decisions or developments significantly impact outcomes.

Consequences of Action

The outcomes or results that directly follow from one's actions or decisions, whether intentional or unintended.

Prosocial Behaviour

Voluntary actions intended to help or benefit another individual or group of individuals without expectation of reward.