Which Conclusion Does the Fact That Wage Differentials Continue to Exist

question 155

Multiple Choice

Which conclusion does the fact that wage differentials continue to exist across different groups of workers lead economists to believe

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

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