The Fact That Wage Differentials Continue to Exist Across Different

question 145

Multiple Choice

The fact that wage differentials continue to exist across different groups of workers has led economists to believe that:

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

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