After graduating from college, you receive job offers from five different accounting firms. All job offers have a different compensation package. Is it irrational for you to accept an offer that doesn't provide the highest level of monetary compensation? Use the concept of compensating differentials to explain your answer


Compensating differentials refer to differences in job characteristics across different occupations. But compensating differentials can also lead to differences in job characteristics within an occupation. Such considerations may include geographic location and quality-of-life issues associated with a particular job offer. Thus, it is not irrational to consider nonmonetary compensation.

Economics

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In the above figure, which movement illustrates the impact of the price level and money wage rate falling at the same rate?

A) E to H B) E to K C) E to J D) E to G

Economics

A foreign exchange swap

A) is a spot sale of a currency. B) is a forward repurchase of the currency. C) is a spot sale of a currency combined with a forward repurchase of the currency. D) is a spot sale of a currency combined with a forward sale of the currency. E) make up a negligible proportion of all foreign exchange trading.

Economics

According to the theory of liquidity preference, which variable adjusts to balance the supply and demand for money?

a. interest rate b. money supply c. quantity of output d. price level

Economics

Some economists believe that:

A. giving benefits to the rich will expand aggregate output and thus help the poor. B. taxing the rich will cause them to increase their work efforts. C. taxing the poor will cause them to increase their work efforts. D. giving benefits to the poor will reduce aggregate demand, improving business so that wealthy stockholders are better off.

Economics