The Fact That Wage Differentials Continue to Exist Across Different

question 65

Multiple Choice

The fact that wage differentials continue to exist across different groups of workers leads economists to believe that

• A) discrimination by customers is the most common type of economic discrimination.
• B) differences in human capital and job characteristics must be important in explaining the differences in wages.
• C) firms apparently are not profit maximizers.
• D) the market has failed to properly allocate wages to different workers.