Nick and Daryn are both market analysts who graduated from the same university with bachelors' degrees in economics and achieved similar performance reviews.Daryn has one year more experience in his current position than does Nick.If Daryn earns a higher annual salary than Nick because he has an additional year of tenure,the employer is
A) paying a compensating differential.
B) rewarding increases in human capital.
C) practicing discrimination.
D) paying efficiency wages.

Question

Quizplus · Accepted Answer

The employer is rewarding increases in human capital, as Daryn's additional year of experience is considered an increase in his human capital, leading to a higher salary.

Nick and Daryn Are Both Market Analysts Who Graduated from the Same