Brett is equally qualified for two different jobs -- video store clerk and coffee shop cashier.Brett is initially indifferent between the two jobs but when he finds out that they pay the same wage he prefers the job at the video store.This must mean that
A)the coffee shop pays a compensating wage differential.
B)the video store must be in a dangerous neighborhood.
C)the video job pays a compensating wage differential.
D)Brett decides he likes videos more than coffee.
E)the video job would require him to work harder.

Question

Quizplus · Accepted Answer

If Brett initially had no preference between the two jobs, but now prefers the video store job when finding out they pay the same wage, it must mean that the video store job is offering some other form of compensation that makes it more desirable than the coffee shop job. This is known as a compensating wage differential, where a job may offer higher pay or other benefits to compensate for less desirable working conditions, such as longer hours, higher risk, or unpleasant duties. Therefore, the correct option is C, the video job pays a compensating wage differential.

Brett Is Equally Qualified for Two Different Jobs -- Video