Which of the Following Is Most Likely an Example of Wage

question 332

Multiple Choice

Which of the following is most likely an example of wage disparity due to differences in human capital?

• A) The median earnings of White men are more than the median earnings of African Americans.
• B) People with graduate degrees usually have higher earnings than people who did not graduate from high school.
• C) Nick Saban, the football coach at the University of Alabama, earns more than an economics professor.
• D) Crab fishermen on the Bering Sea earn more than clerks who sell goldfish at a pet store.

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Definitions:

Chain Saws

Mechanical tools equipped with a rotating chain with teeth that are used for cutting through wood or other materials.

Perfectly Inelastic

A situation in which demand or supply does not respond at all to changes in price levels, illustrated by a vertical demand or supply curve.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers.

Income Effect

That part of an increase (decrease) in amount consumed that is the result of the consumer’s real income being expanded (contracted) by a reduction (rise) in the price of a good.