Traci is a nurse, and she gets paid an additional $1.00 per hour for agreeing to work the night shift.

Traci is a nurse, and she gets paid an additional $1.00 per hour for agreeing to work the night shift. Carol is also a nurse, but she works the day shift and does not get paid this extra dollar per hour. This difference in pay is an example of a compensating differential.

 a. True