The idea of compensating differences is used:
A. by inclusive unions as an argument in bargaining for wage rate increases.
B. to justify the application of minimum wages to low-wage labor markets.
C. to explain the divergence between wage rates and marginal resource cost.
D. to explain wage rate differences based on differing nonmonetary aspects of jobs.
Answer: D
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According to the Ricardo-Barro effect, if the government runs a budget deficit of $100 billion, by how much does the amount of equilibrium investment increase or decrease?
What will be an ideal response?
Refer to the payoff matrix below. Which of the following is true for Best Lights?
A) They do not have a pure strategy.
B) Their dominant strategy is to set a Low Price.
C) They do not have a dominant strategy.
D) Their dominant strategy is to set a High Price.
The fee that insurance companies collect in exchange for covering unpredictable costs is called a:
A. premium. B. ultimatum. C. prepaid event charge. D. preventative payment.
Programs that require people to pay into a common pool and are in turn eligible to draw on benefits under certain circumstances are called:
A. social insurance programs. B. social benefit programs. C. common insurance programs. D. equitable payment programs.