Which of the Following Might Explain the Beauty Premium Found

question 405

Multiple Choice

Which of the following might explain the beauty premium found by labor economists Hamermesh and Biddle?

• A)Good looks are an innate ability for some jobs, which results in higher productivity and higher wages.
• B)Good looks may be an indirect measure of other types of ability such as attention to detail.
• C)If better-looking people earn more than average-looking people, employers may be discriminating based on personal appearance.
• D)All of the above could explain the beauty premium.

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Definitions:

Cross-Selling Potential

The ability of a company to sell additional products or services to an existing customer base.

Customer Lifetime Value

An estimation of the total value a business can expect from a single customer throughout the entirety of their relationship.

Net Present Value

A financial metric assessing the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows.

Customer Relationship

The interactions and engagement between a business and its customers, aiming to improve satisfaction, loyalty, and ultimately sales.