John and Mark hold equivalent secretarial jobs, but John, who makes 20 percent more than Mark, is employed by a manufacturing firm while Mark is employed by a department store.
Based on this information, which of the following best explains this pay differential?
A) interindustry wage differentials
B) differences in human capital intensity
C) merit exception of the Equal Pay Act of 1963
D) John's stronger negotiation skills
Question 2
Compared to the duration of most training in capital intensive industries, service industry training tends to be which of the following?
A) the same cost
B) shorter
C) longer
D) higher cost
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