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:

Raw Materials

These are the basic substances in their natural, modified, or semi-processed state, used as an input to a production process for manufacturing.

Standard Costs

Predetermined or estimated costs used to compare against actual costs, serving as a benchmark for measuring financial performance.

Work in Process

Work in process refers to the materials and goods partially completed during the manufacturing process.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost, indicating how effectively materials costs are managed.