Traci and Ken both work at the local factory producing tractors.Traci earns $20 per hour working the day shift,and Ken earns $22 per hour working the night shift.Traci and Ken do the same job,have the same experience,and have the same level of education.This means that the
A) higher-paying job has a compensating wage differential of $2 per hour.
B) higher-paying job has a compensating wage differential of $22 per hour.
C) higher-paying job is intrinsically more attractive than the lower-paying job.
D) factory is discriminating against Traci because she is a woman.

Question

Quizplus · Accepted Answer

The fact that Ken earns $2 more per hour than Traci suggests that there is a compensating wage differential for working the night shift, which is likely less desirable than the day shift. This does not necessarily mean that the higher-paying job is intrinsically more attractive or that discrimination is taking place.

Traci and Ken Both Work at the Local Factory Producing