One Implication of the Theory of Compensating Differentials Is That

Multiple Choice

One implication of the theory of compensating differentials is that jobs in states with high income tax rates are likely to

A) be associated with more fringe benefits.
B) be associated with fewer fringe benefits.
C) pay the same wage and offer the same fringe benefits package as the same jobs in lower-tax states.
D) have worse working conditions.
E) be seasonal in nature.