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) an acquired difference.
B) an intrinsic difference.
C) an equilibrium differential.
D) a compensating differential.
E) a temporary factor- price differential.

Question

Quizplus · Accepted Answer

This wage difference is likely due to the compensating differential, which refers to the extra pay that workers receive for taking on a job that comes with non-monetary drawbacks such as isolation, harsh climate, or dangerous conditions, as is often the case for diamond mining camps in Canada's North.

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