Assume That Empirical Evidence Shows a Difference in Mean Earnings

question 80

Multiple Choice

Assume that empirical evidence shows a difference in mean earnings between two groups, say, majority and minority workers. What conclusion may be drawn?

• A) The group with the lower earnings is being discriminated against.
• B) The group with the lower earnings is less productive.
• C) The group with the lower earnings has less human capital.
• D) Any of the above statements could, either partially or entirely, explain this difference.

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Definitions:

Warranty Obligations

Liabilities recognized by a company to cover the costs of repairs or replacements for products sold within a specified warranty period.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument to present value.

Present Obligation

A duty or responsibility that is expected to be settled in the future, recognized as a liability.