The line joining the old and new optimum points following a pivotal rotation of the budget line is:
a. the price-consumption curve.
b. the income-consumption curve.
c. the Engels curve.
d. the hypothetical budget line
Question 2
The term compensating wage differential refers to:
a. the bargaining capacity of a monoposonist in the labor market.
b. the wage differences that arise from differences in the risk involved in different jobs.
c. the criteria on which a firm offers a 401K plan to all its employees or just some employees.
d. the wage differences that arise from difference in productivity of the workers in a firm.
e. the negotiating power of the trade union.
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