Matthew just graduated from culinary school. He can earn $40,000 a year working for the same local bakery he has worked at since before starting culinary school, or accept a job offer he received after graduation from a high-end restaurant paying $70,000 a year. The higher salary is a result of
A)a compensating differential.
B)efficient union bargaining.
C)having more human capital.
D)pure luck.

Question

Quizplus · Accepted Answer

The higher salary is a result of having more human capital, as Matthew's culinary school education has increased his skills and qualifications, making him more valuable to employers.

Matthew Just Graduated from Culinary School