"Compensating wage differentials" arise because:
a. workers possess different skills.
b. workers prefer the characteristics of some to those of others.
c. firms pay higher wages for workers with higher marginal productivities.
d. firms discriminate in hiring.
b
Economics
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An increase in the price of labor used to produce good Y will lead to
A) an increase in the market clearing price of good Y. B) an increase in the supply of good Y. C) a decrease in the demand for good Y. D) an increase in the demand for good Y.
Economics
Economists assume that the goal of a firm is to
A) maximize economic profits. B) sell as many units as possible. C) maximize gross revenues. D) be the largest firm in its industry.
Economics