Suppose a cook at a diamond mining camp in Canada's North earns a much higher wage than a cook with similar training and experience at an office building in Halifax.Economists would likely call this
A)a compensating differential.
B)an acquired difference.
C)an equilibrium differential.
D)a temporary factor- price differential.
E)an intrinsic difference.

Question

Quizplus · Accepted Answer

The situation described is an example of a compensating differential, which occurs when a worker is paid more due to the difficulty or unpleasantness of the job or work environment. In this case, the cook is likely being compensated for the harsh living conditions and isolation of the diamond mining camp.

Suppose a Cook at a Diamond Mining Camp in Canada's