Benjamin and Ian are identical twins who attended elementary school through high school together. Benjamin got a job after high school, and Ian got a job after graduating from college. Benjamin earns $33,000 a year, and Ian earns $62,000 a year. Select the best explanation for this wage difference.
A)Benjamin has less human capital than Ian.
B)Ian has less human capital than Benjamin.
C)Benjamin has received a compensating differential
D)Benjamin is a member of a union.

Question

Quizplus · Accepted Answer

Human capital refers to the skills, knowledge, and experience possessed by an individual, which can affect their value in the job market. Ian, having graduated from college, likely has more human capital than Benjamin, who started working right after high school, thus explaining the wage difference.

Benjamin and Ian Are Identical Twins Who Attended Elementary School