Dan and Dave are both college graduates. Dan is a patrolman and Dave is a detective in the same police precinct. While Dan's job is inherently more dangerous than Dave's, Dave passed a difficult exam to gain promotion to detective. Dave earns more than Dan because
A)Dave's job is less dangerous.
B)of efficiency wages.
C)of education as a signal.
D)Dave has more human capital.

Question

Quizplus · Accepted Answer

Dave passed a difficult exam to become a detective, indicating that he has acquired more human capital (specific knowledge and skills) than Dan, who is a patrolman. This human capital and specialized training make Dave more productive and valuable to the police department, allowing him to earn a higher salary.

Dan and Dave Are Both College Graduates