AP Microeconomics

Answer - C - The differences in wage levels that occur from job characteristics are compensating differentials.

Key Takeaway: The compensating differential analyzes the relationship between the wage rate and any of the unpleasant sides of doing a job (including any risks involved) the unpleasantness, risk, or other undesirable attributes of a particular job. The compensating differential is basically the additional amount of salary that must be given to a particular worker in order to do the unpleasant portions of the position.