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Marshall and Lily work at a local department store.Marshall, who greets customers as they arrive, is paidless than Lily, who cleans the bathrooms. This is anexample ofa. a compensating differential.b. human capital.c. signaling.d. efficiency wages.
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a. a compensating differential.
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so building off of the last question here on number two, We're talking about the difference between the pay, the wages for a greeter and, um, someone who's cleaning bathrooms. So over here, we've got Marshall who's cleaning bathrooms. And so when we're going kind of through the answers here, um, if we're looking at option A, we see that Okay, what is the compensating differential? That's something that we use when two jobs are different, based on other factors to kind of equivocate them. And so here we've got Marshal who has chilled job where they're just saying hello to customers. Nothing really too bad about it. Nothing to great. Um, but it's it's pleasant, generally pleasant. However, Lilley is cleaning bathrooms, which can get gross a little bit dirty. Um, it's a lot more manual labor, right? So it's kind of a less desirable job. It's what we would consider maybe, ah, bad job versus a good job. And so because of that, Lily needs to get paid more, and that difference right there. Um, the pay difference right there is what makes the compensating differential compensating differential. Um, it's the dollars between two jobs, So that's kind of what? We're looking at them. That one on, def. We're just kind of going down the answers here. We can say be human capital isn't necessarily the case because we don't know necessarily the difference between the two of them. We could know that they have the same skill. They have different skills. So human capital is not really in question here because we're not talking about skills or um or their productivity specifically so then, if we're going to Option C when we're thinking about signaling again, that's something that we use in a totally different scenario. Um, that's what we say when we're talking about high ability or low ability workers. And maybe if they have a college degree there, hi ability. So that's not necessarily what's happening here. And the efficiency wages again, not the case. Um, Lily's not getting paid more because they want her to be more productive. She's getting paid more because the jobs themselves are different. And so, um, that would be more related to productivity and kind of keeping the best workers around. That's why you would give an efficiency wage
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