In Determining Wages, Ability, Effort, and Chance

question 178

Multiple Choice

In determining wages, ability, effort, and chance

• A)probably play no role whatsoever.
• B)play a role, but their importance is hard to gauge since ability, effort, and chance are hard to measure.
• C)play a role, and that role is fully captured in easy-to-measure factors such as human capital and age.
• D)play a role, and it is fully explained within the context of compensating differentials.

---

Definitions:

Sales

The total amount of revenue generated by the sale of goods or services.

Unit Variable Cost

The variable cost incurred to produce one unit of a product, including materials, labor, and variable overhead.

Minimum Required Rate Of Return

This is the lowest return that investors expect for an investment, affecting the value and desirability of an investment opportunity.