Which of the Following Is an Economic Explanation for the "Beauty

question 342

Multiple Choice

Which of the following is an economic explanation for the "beauty premium"?

• A)Employers pay very attractive women less than average-looking women because they believe them to be less intelligent.
• B)Employers pay above-average-looking men more than above-average-looking women.
• C)Employers pay above-average-looking women more than average-looking women because customers prefer to deal with better-looking women.
• D)Employers pay above-average-looking men more because they signal to the market that they are willing to spend more money on personal grooming, a sign of wealth and stability.

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Definitions:

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services at all levels within a society.

Benefits

Refers to various forms of compensation employees receive from their employers, which may include health insurance, retirement plans, and paid time off.

Short-Term Interest Rates

Interest rates on loan or debt obligations with a maturity of less than one year, influencing borrowing costs and economic activity.

Housing Prices

The financial cost required to purchase residential properties; influenced by location, demand, and other economic factors.