Suppose a Couple's Decision About Where to Live Was Based

question 33

Multiple Choice

Suppose a couple's decision about where to live was based on maximizing family income.The wife is offered a job elsewhere paying $35,000 more per year,but the husband would have to take a $60,000 pay cut to move with her so they stay.The fact that the wife's salary is lower than average in her field is a result of

• A) compensating differentials.
• B) supply decisions by the workers.
• C) gender discrimination.
• D) differences in human capital.

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