Working in a slaughterhouse is much riskier and more unpleasant than working in a bookstore.As a result,we'd expect a difference in wages between the two jobs.The difference is known as
A) an efficiency wage.
B) a compensating differential.
C) a wage adjustment.
D) a minimum wage.

Question

Quizplus · Accepted Answer

A compensating differential is the difference in wages between two jobs that have different levels of risk, discomfort, or inconvenience. In this case, working in a slaughterhouse is riskier and more unpleasant than working in a bookstore, so we would expect workers in the slaughterhouse to be paid more to compensate them for the additional hardships of their job.

Working in a Slaughterhouse Is Much Riskier and More Unpleasant