As a summer job, some teenagers choose to detassle corn, a job requiring long hours walking corn fields in the summer heat. Other teens take jobs working as lifeguards. Given that detassling corn is a more difficult job than working as a lifeguard, we would expect a difference in wages between the two jobs. This difference is known as
A)an efficiency wage.
B)a compensating differential.
C)a wage adjustment.
D)a minimum wage.

Question

Quizplus · Accepted Answer

The difference in wages between detassling corn and working as a lifeguard is a compensating differential. This is because detassling corn is typically considered a more difficult and unpleasant job than lifeguarding, so employers offer higher wages to compensate workers for taking on the extra hardship.

As a Summer Job, Some Teenagers Choose to Detassle Corn