Suppose that a company hires recent college graduates for two types of jobs, sales people and credit analysts. The hours worked and skill levels are the same for both positions. The sales people must "cold call," which many people find to be unpleasant. When comparing the salaries of the two positions, it is likely that the company pays the
A)credit analysts more as a compensating differential.
B)sales people more as a compensating differential.
C)same salary for both positions because they require the same skill level.
D)same salary for both positions because it would be illegal to do otherwise.

Question

Quizplus · Accepted Answer

Sales people are likely paid more as a compensating differential because cold calling is considered an unpleasant task, and higher pay compensates for this undesirable aspect of the job.

Suppose That a Company Hires Recent College Graduates for Two