The Fact That Wage Differentials Continue to Exist Across Different

question 145

Multiple Choice

The fact that wage differentials continue to exist across different groups of workers has led economists to believe that:

• A)discrimination is in fact a very large economic problem
• B)firms apparently are not profit maximisers
• C)differences in human capital and job characteristics must be important in explaining the differences in wages
• D)the market has failed to properly allocate wages to different workers

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Definitions:

Attraction-Selection-Attrition

A framework explaining how individuals are attracted to, selected by, and eventually leave organizations based on congruence with the organizational culture.

Adjourning

The final stage of group development where the group completes its task, dissolves, and members move on to other activities or groups.

Bruce Tuckman

An American psychological researcher known for his model on the stages of group development.

Reciprocal

Involving mutual actions or relationships where two parties give and take equivalently.