Many Economists Are Critical of Proposals to Pass Comparable Worth

question 41

Multiple Choice

Many economists are critical of proposals to pass comparable worth legislation.Which of the following is the best explanation for this criticism?

• A)Comparable worth legislation will only lead to efficient market outcomes if women in low-paying jobs suffer from cognitive dissonance.
• B)Proposals for comparable worth legislation assume that wages for low-paying women's jobs should include compensating differentials. Economists believe that compensating differentials should be part of the wages for all jobs held by women.
• C)Proposals for comparable worth legislation call for increases in the wages of jobs held predominantly by women. Economists believe that this legislation should be used to increase the wages of all workers.
• D)Many economists believe that allowing markets to determine wages, rather than the rules required by comparable worth legislation, results in more efficient outcomes.

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Definitions:

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International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the preparation of financial statements globally.

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A universally recognized set of rules and standards for financial reporting, applied within a specific legal territory, known as Generally Accepted Accounting Principles.

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A financial report that provides a summary of a company's revenues, expenses, and profits/losses over a specific period of time.