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

Question

Quizplus · Accepted Answer

Bill earns more than Jake because he has more human capital, which includes the skills and knowledge gained through experience and passing the difficult exam to become a detective.

Jake and Bill Are Both College Graduates