Refer to the Information Provided

question 112

Multiple Choice

Refer to the information provided.If some consumers in the market for a haircut have a strong preference for having their hair cut by a barber that is not going bald, then:

• A)a competitive market equilibrium is not consistent with the wage difference between bald and non-bald barbers
• B)the difference in wages will eventually disappear, since a haircut is a homogeneous good
• C)barbershops that hire barbers with hair will always be much more profitable
• D)barbershops that hire barbers with hair will be able to charge a higher price for a haircut to those consumers that have a strong preference for non-bald barbers

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Definitions:

Construct Validity

The extent to which a test measures what it claims to be measuring, indicating the accuracy of the construct it represents.

Operational Definitions

Observable operations, procedures, and measurements that are based on the independent and dependent variables.

Internal Validity

The extent to which a study can demonstrate a causal relationship between variables, minimizing the influence of external factors.

Independent Variable

A variable that is manipulated or changed in an experiment to observe its effects on a dependent variable.