On average, truck drivers who drive on dangerous ice-covered roads earn more per mile driven than similarly skilled truck drivers who drive on normal roads. The difference in pay can be attributed to
A)the marginal product of labor.
B)the marginal product of capital.
C)diminishing marginal returns.
D)a compensating differential.

Question

Quizplus · Accepted Answer

The difference in pay between truck drivers who drive on dangerous ice-covered roads and those who drive on normal roads is due to a compensating differential. This is a difference in pay that compensates workers for the additional risk and discomfort associated with a particular job. In this case, driving on dangerous ice-covered roads is considered riskier and more uncomfortable, so truck drivers who do it are paid more to compensate for these factors. The other options (A, B, and C) are not relevant in this scenario.

On Average, Truck Drivers Who Drive on Dangerous Ice-Covered Roads