Which of the following is an example of a compensating wage differential?
A)Nurse anesthetists are paid less than anesthesiologists (who have medical degrees).
B)Workers in a uranium mine receive higher wages than if they worked in other jobs that require the same level of skills.
C)In the market for lawyers, top graduates from the top programs earn starting salaries that are significantly higher than the starting salaries earned by lower-ranked graduates from the lower-ranked programs.
D)Popular movie stars like George Clooney command much higher salaries than other talented but lesser-known actors.

Question

Quizplus · Accepted Answer

Compensating wage differentials occur when workers are compensated with higher wages to take on jobs that have less desirable working conditions or higher risks. Workers in a uranium mine face potential health risks and therefore receive higher wages compared to other jobs that require similar levels of skill. Choices A, C, and D do not involve compensating wage differentials.

Which of the Following Is an Example of a Compensating