Which Statement Best Explains the Cause of Wage Differential

question 92

Multiple Choice

Which statement best explains the cause of wage differential

• A)Additional education that increases a worker's wage necessarily increases the worker's productivity, and firms pay their workers based on their productivity.
• B)If discriminating wage differentials persist in competitive markets, it is primarily because either consumers are willing to pay to maintain the discrimination or because government mandates it.
• C)Efficiency wage theory explains that non-discriminatory employers pay lower wages to workers whom discriminatory employers refuse to hire.
• D)Workers from the perfectly competitive market are paid a higher wage than those from other market structures.

---

Definitions:

Significant Problem

A crucial or serious issue that requires attention and resolution due to its impact on individuals, communities, or systems.

Invention

The creation or design of something that did not previously exist, often resulting from creativity and innovation, and typically leading to new products, processes, or techniques.

Multinational Society

A society comprised of people from various nationalities, integrating multiple cultures, languages, and values.

Borders

Lines or zones that mark the edges of a country, territory, or region, controlling the movement of goods, people, and animals.