In Empirical Analyses of Factors That Help Explain Wages

question 317

Multiple Choice

In empirical analyses of factors that help explain wages,

• A)effort and ability are not likely to contribute to large differences in wages in the U.S. economy.
• B)economists typically find that measurable factors explain less than half of the variation in wages.
• C)economists typically find few factors that are not explicitly measurable.
• D)unmeasurable influences on wage differences are found to be quite small.

---

Definitions:

Perpetual Inventory

A system of inventory management where updates are made continuously as inventory items are bought and sold.

Defective Merchandise

Defective merchandise refers to products that are damaged or fail to meet quality standards or specifications at the time of sale.

Gross Profit

The financial measure calculated by deducting the cost of goods sold from total sales revenue.

Selling Expenses

Costs associated with the marketing and distribution of a product, including advertising, sales staff salaries, and shipping costs.