Which of the following is an example of a compensating differential?
A. A plastic surgeon must train for five more years than an internist and on average plastic surgeons earn 40% more per year than internists.
B. It takes the same amount and type of training to be either a prison guard or a parole officer. Prison guards earn about 15% more than parole officers with the same amount of experience. About 3% of prison guards, but only 1% of parole officers, are injured on the job each year.
C. A bank hires both men and women who have just graduated from college. The women are assigned positions as bank tellers, and the men are assigned to the management training program.
D. Bill was injured on the job and as a result of his injuries he can no longer work. He now qualifies for $1,000 a month in disability payments.
Answer: B
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Caroline tells her friend Octavia to keep searching for a job because there are plenty of jobs in the area for which she is qualified. This advice is most appropriate for which of the following types of unemployment?
A) structural unemployment B) frictional unemployment C) cyclical unemployment D) seasonal unemployment
When psychologists refer to the "Paradox of Choice", what do they mean?
a. More choices may lead people to avoid the decision all together. b. More choices always make people at least as well off (related to the option value principle). c. Risk-averse people sometimes prefer risk because of the thrill it provides. d. If two people with free will make simultaneous decisions, these may sometimes conflict.
Supporters of minimum-wage legislation argue that:
A. workers deserve a basic standard of living. B. it would not be fair for firms to pay a wage that would leave workers struggling to escape poverty. C. a worker earning minimum wage should be able to live above the poverty line. D. All of these are true.
In 2009, which category accounted for the highest share in the U.S. exports?
a. Industrial supplies b. Capital goods c. Services d. Consumer goods