All Pittsburgh police officers must go through the same training program, but police officers assigned to the narcotics squad earn 10% more than police officers assigned to guard the city courthouse. This 10% difference in pay is an example of a

Question

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The 10% difference in pay for police officers assigned to the narcotics squad compared to those guarding the city courthouse is a compensating differential. This is because it compensates for the differences in job conditions, such as the higher risk or greater skill requirements associated with the narcotics squad.

All Pittsburgh Police Officers Must Go Through the Same Training