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Question
The pay for journalists is quite varied. A top-tier journalist often receives a steady flow of assignments, such as two weekly columns, and so earns generous pay. A lower-tier journalist, however, often experiences sporadic work assignments with little to no pay. What economic theory explains this situation?
a. winner-take-all
b. in-kind transfers
c. efficiency wage
d. occupational crowding
e. compensating differentials
Answer
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