A firm has two plants, one located in desirable Scenic Springs and the other located in the undesirable Swamp Lands. If the workers in Scenic Springs are paid $50,000 a year and the workers in Swamp Land are paid $60,000, which of the following is true?
A) The $10,000 difference in salaries is the worker equity payment.
B) The $10,000 difference in salaries is the compensating wage differential.
C) The $60,000 salary is a worker equity payment.
D) The $60,000 salary is a compensating wage differential.
B) The $10,000 difference in salaries is the compensating wage differential.
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Gross public debt is
A) the total value of budget deficits plus budget surpluses over the past five years. B) an excess of government spending over government revenues during a given time period. C) a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given time period. D) all federal government debt irrespective of who owns it.
If the price of inputs rises and personal income taxes rise:
a. Aggregate demand falls and aggregate supply rises. b. Aggregate demand rises and aggregate supply rises. c. Aggregate demand falls and aggregate supply falls. d. Neither the aggregate demand nor the aggregate supply change. e. None of the above.
For a monopoly, marginal revenue for all units greater than 1 is always:
A. more than price because of the quantity effect. B. more than price because of the price effect. C. less than price because of the quantity effect. D. less than price because of the price effect.
The aggregate demand curve shows that, ceteris paribus, at ________ price levels total quantity demanded is ________.
A. lower; higher B. positive; negative C. lower; lower D. higher; higher