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- Human Capitaleconomics-mcqs › human-capital
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
If an individual employed in a coal mine earns a higher wage than another person with comparable skills and experience working in a safer occupation, what does this indicate?
Multiple choice question for Human Capital. Select an option, then review the explanation below.
Explanation
When workers in riskier jobs like coal mining receive higher pay compared to equally skilled workers in safer roles, it demonstrates a compensating differential—additional compensation to offset job hazards or unpleasant conditions.
More Human Capital MCQs
Practice related questions from the same subject.
- 1.From the perspective of the human capital theory, what is the role of education?
- 2.What does the signaling theory of education primarily suggest?
- 3.When two positions demand equal skills and experience, which job is generally the one offering higher pay?
- 4.Which statement accurately describes the relationship between attractiveness and earnings among workers?
- 5.Which profession has the highest potential to earn income comparable to a superstar?