Which of the following is not an example of a compensating differential? Job A pays more than Job B because Job A requires

a. more international travel to dangerous locations.
b. two night shifts per month.
c. careful handling of toxic chemicals.
d. an advanced degree.

d

Economics

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Suppose that there are two goods, X and Y, that are competing for dominance in a market with network externalities.  Furthermore, suppose that the market has chosen good X even though it is inferior to good Y and that the net benefits of switching from X to Y are $20 while the costs of switching are $30.  If the market stays with good X, then __________________ has occurred.  If the costs of switching were to fall to $15 and the market still stays with good X then ___________________________.

A. no market failure; market failure has occurred. B. market failure; no market failure has occurred. C. no market failure; there will still be no market failure. D. market failure; there will still be market failure.

Economics

First-degree price discrimination:

A. results in the firm extracting all surplus from consumers. B. occurs when a firm charges each consumer the maximum price he or she would be willing to pay for each unit of the good purchased. C. occurs when a firm charges each consumer the maximum price he or she would be willing to pay for each unit of the good purchased and results in the firm extracting all surplus from consumers. D. None of the answers are correct.

Economics