Studies That Try to Measure the Factors That Explain Wage

question 190

Multiple Choice

Studies that try to measure the factors that explain wage differences have shown that:

• A)influences on wage differences are found to be quite small
• B)few factors are not explicitly measurable
• C)measurable factors explain less than half of the variation in wages
• D)effort and ability are not likely to contribute to large differences in wages

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Definitions:

Heuristics

Simple, efficient rules, either hardwired by evolutionary processes or learned, which help individuals make decisions, come to judgments, and solve problems when facing complex situations or incomplete information.

Rational Model

A decision-making model that assumes individuals will make decisions based on logical analysis, aiming to maximize outcomes by evaluating all possible alternatives.

Preferences

Individual or collective tastes, inclinations, or choices that dictate behavior or decision-making processes.

Z Problem-solving Model

A structured approach to problem-solving that involves examining different aspects and perspectives of an issue before making a decision.