Nancy and Sheila are both loan officers who graduated from the same university with bachelors' degrees in economics, and achieved similar performance reviews. Nancy started working one year before Sheila. If Nancy earns a higher annual salary than Sheila because she has more experience, the employer is
A)rewarding increases in human capital.
B)paying efficiency wages.
C)practicing discrimination.
D)paying a compensating differential.

Question

Quizplus · Accepted Answer

The employer is rewarding increases in human capital by paying Nancy a higher salary due to her additional year of experience, which is considered an increase in her human capital.

Nancy and Sheila Are Both Loan Officers Who Graduated from the Same