A Difference in Wages Between a Highly-Educated Worker and a Less-Educated

question 332

Multiple Choice

A difference in wages between a highly-educated worker and a less-educated worker is

• A) a compensating differential for the cost of becoming educated.
• B) a signal that the market is indifferent to a worker's level of human capital.
• C) considered unfair by economists.
• D) considered unfair by everyone.

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Definitions:

Statistical Principles

The fundamental concepts that underpin the logic, methodology, and validity of quantitative research and data analysis, including probability, variability, inference, and modeling.

Decision-making Process

A series of steps or stages that involve identifying a problem, gathering information, evaluating alternatives, and making choices to reach a conclusion.

Daniel Kahneman

A renowned psychologist and economist, known for his work on the psychology of judgment and decision-making, as well as behavioral economics.

Amos Tversky

A cognitive and mathematical psychologist known for his collaborative work with Daniel Kahneman on the cognitive biases affecting human judgment and decision-making.