A Difference in Wages Between a Highly-Educated Worker and a Less-Educated

question 76

Multiple Choice

A difference in wages between a highly-educated worker and a less-educated worker

• A)may be due to a difference in the amounts of human capital between the workers.
• B)may be a signal that the market is indifferent to a worker's level of human capital.
• C)is considered unfair by economists.
• D)is considered unfair by everyone.

---

Definitions:

Correlation Coefficient

A statistical measure that describes the size and direction of a relationship between two or more variables.

Covariance

A measure of the joint variability of two random variables.

Correlation Coefficient

A numerical index that reflects the linear relationship between two variables, ranging from -1 to 1.

Linear Relationship

A relationship between two variables where the change in one variable is associated with a proportional change in the other variable.