Cory has just graduated from veterinary school. He can earn $40,000 working at a small animal clinic or $50,000 working with farm animals and horses where the risks of getting injured by an animal are higher. The higher salary to work with larger animals is an example of
a. a compensating differential.
b. signaling theory.
c. an efficiency wage.
d. efficient union bargaining.
a
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An implication of scarcity is that:
A. making trade-offs becomes unnecessary as wealth increases. B. people must make trade-offs. C. some people will always be poor. D. people will never be happy.
Holding nonmonetary assets and converting them to money when necessary is justifiable so long as
A) nonmonetary assets pay an interest rate above that available on money. B) nonmonetary assets pay an interest rate below that available on money. C) money, and not nonmonetary assets, are generally used in transactions. D) money and nonmonetary assets are both used as bartering items.
All of the following are market determinants of exchange rates EXCEPT
A. changes in productivity in one country relative to another. B. changes in the relative prices of goods and services within a country. C. changes in real interest rates in one country relative to another. D. changes in product preferences between countries.
Benchmarking may be a problem if
A. the current architecture is relatively unstable and proposed changes add huge benefits. B. the current architecture is relatively stable and proposed changes add little benefits. C. the current architecture is relatively stable and proposed changes add huge benefits. D. the current architecture is relatively unstable and proposed changes add little benefits.