Which statement describes a compensating differential?
A) Tiger Woods gets paid more than does a university professor.
B) A window washer working in a suburban residential subdivision gets paid less than does one who is washing windows on the outside of a skyscraper.
C) A nuclear scientist gets paid more than does a janitor working in the same building.
D) On average,White men get paid more than do women of all ethnicities.

Question

Quizplus · Accepted Answer

A compensating differential refers to the extra pay that a worker is given to compensate for a less desirable or risky job. Window washing on a skyscraper is riskier than in a residential subdivision, so the worker doing the former job is compensated with a higher wage.

Which Statement Describes a Compensating Differential