Jake and Zach Are Identical Twins Who Attended Grammar School

question 90

Multiple Choice

Jake and Zach are identical twins who attended grammar school through college together. Jake took a job as an engineer who does not have to travel out of the state. Zach took a job as an engineer who must travel out of state once a week. Jake earns $125,000 a year, and Zach earns $155,000 a year. Select the best explanation for this wage difference.

• A)Zach puts in less effort than Jake.
• B)Zach has less human capital than Jake.
• C)Zach receives a higher wage to compensate for the disagreeable nature of business travel.
• D)Jake's lower salary supports the signaling theory of education.

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Definitions:

Promissory Note

A written promise to pay a specified amount of money, usually with interest, at a determined future date.

Payee

The person or company to whom the check is payable.

Drawer

Person who writes a check.

Maker

One promising to pay a note.