Which of the following comparisons best illustrates a compensating differential?
A) John's wage is higher than Jane's because the value of John's marginal product is higher than Jane's.
B) Karl's wage is higher than Kay's because Karl is very personable, and Kay is very gruff.
C) Beth's wage is higher than Bill's because Beth's job may cause long-term health problems, and Bill's job will not impair his health.
D) All of the above are good illustrations of compensating differentials.
Correct Answer:
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