Differences in wages that result from differences in working conditions are known as ?
Correct answer: D. compensating differentials
- A. occupational differentials
- B. search differentials
- C. job differentials.
- D. compensating differentials
Explanation
Compensating differentials are wage differences that offset better or worse job characteristics, such as risk, unpleasant conditions, or inconvenient hours. They compensate workers for accepting less desirable working conditions.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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