Adam and Bob are identical twins who attended grammar school through high school together. Adam got a job after high school, and Bob got a job after graduating from college. Adam earns $36,000 a year, and Bob earns $69,000 a year. Select the best explanation for this wage difference.
A)Adam has less human capital than Bob.
B)Bob has less human capital than Adam.
C)Adam has received a compensating differential
D)Adam is a member of a union.

Question

Quizplus · Accepted Answer

Bob has more human capital than Adam because he has a college degree, which typically leads to higher earnings compared to just a high school education.

Adam and Bob Are Identical Twins Who Attended Grammar School