To What Extend Can We Use Differences in Human Capital

question 145

Multiple Choice

To what extend can we use differences in human capital to explain wage differentials

• A)they are unrelated to wage rate differences across gender classifications, since both men and women are required to complete requirements for a high school diploma.
• B)they are most helpful in explaining age discrimination, but unhelpful in explaining discrimination on the basis of ethnicity.
• C)they explain some of the difference in average wage rates across age classifications.
• D)they explain all of the difference in average wage rates across gender classifications.

---

Definitions:

Purchases

Purchases refer to the action of obtaining goods or services in exchange for money, marking a basic economic transaction between buyers and sellers.

Average Tax Rate

The proportion of total income that is paid in taxes, calculated by dividing the total amount of taxes paid by the total income.

Total Taxes

The cumulative amount of taxes owed by an individual or corporation to the government, including federal, state, and local taxes.

Taxable Income

The amount of income that is used to calculate an individual's or a company's income tax due.