Compensating differentials are
A) nonmonetary benefits from being employed, such as health-care benefits.
B) wages paid to workers where the supply of labour is great relative to demand.
C) higher wages that compensate workers for unpleasant aspects of a job.
D) higher wages that compensate the more experienced workers in a field.

Question

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Compensating differentials are higher wages that compensate workers for unpleasant aspects of a job.

Compensating Differentials Are