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    Principles of Microeconomics Study Set 10
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    Exam 19: Earnings and Discrimination
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    A Compensating Differential Is
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A Compensating Differential Is

Question 3

Question 3

Multiple Choice

A compensating differential is


A) a difference in pay due to nonmonetary characteristics of different jobs.
B) a high wage paid by employers to entice workers to be more productive.
C) the difference between the quantity of labor supplied and the quantity of labor demanded at the minimum wage.
D) due only to difference in the productivity of workers with different skills.

Correct Answer:

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