Purchase Solution

compensating differentials

Not what you're looking for?

Ask Custom Question

Give two examples of compensating differentials, one in which people work for relatively less pay because a job is fun or has some "psychic income" benefits, and one in which people only work for relatively more pay because the job is particularly unpleasant or difficult.

Purchase this Solution
Solution Summary

One of the examples of people getting higher pay for working in unpleasant conditions will be people working in mining industry.

Solution Preview

One of the examples of people getting higher pay for working in unpleasant conditions will be people working in mining industry. Another example for higher pay for unpleasant conditions will be workers that work on sailing ships. In both the cases, the workers have to work in hazardous or difficult conditions. Miners have to risk their lives to work in deep mines whereas sailors have to remain on ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
Recent Feedback
  • "Thank you. "
  • "Thank you"
  • "Thank you. I got 20/20 last week for my discussion you help me out with."
  • "Thank you. Great Job. "
  • "Thank you. Great Job. "
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • compensating differential theory

    Ans : The theory of compensating wage differentials provides one explanation of wage differences across individuals and across occupations.

  • Efficiency versus Equality

    For example, almost everyone agrees that that income inequality due solely to compensating wage differentials is entirely fair.

  • Exchange rate

    a) interest rate differentials; interest rate differentials b) inflation and interest rate differentials; interest rate differentials c) income and interest rate differentials; inflation differentials d) interest rate differentials

  • Managerial Accounting: Make or Buy Decision

    Required: What is the maximum acceptable price quotation for the slip differentials from the outside supplier?

  • Differentials, Derivatives and Linear Approximation : Natural Logarithms and e^x

    78946 Differentials, Derivatives and Linear Approximation How does one use differentials to estimate e raised to some exponent, leaving the answer in terms of e? Please see the attached file for the complete solution.

  • Compensating Balances

    232604 Dynamic Sofa: Explain how Compensating Balances work in 3 scenarios Compensating Balances.

  • Use differentials to approximate the area of paint

    The solution shows how to apply differentials to approximate paint area around a rectangle.

  • Compensating Balance

    130183 Compensating Balances. Suppose that Dynamic Sofa (a subsidiary of Dynamic Mattress) has a line of credit with a stated interest rate of 10 percent and a compensating balance of 25 percent. The compensating balance earns no interest. a.

  • Section 2.8 Linear Approximations and Differentials

    206463 Linear Approximations and Differentials 2.8 Exercises Find the linearization L(x) of the function at a. 2. f(x) = 1/sqrt(2 + x), a = 0 Explain, in terms of linear approximations or differentials, why the approximation is reasonable.

View More Related Solutions