Which of the Following Does Not Explain the "Beauty Premium

question 43

Multiple Choice

Which of the following does not explain the "beauty premium" differences in wages?

• A) Better-looking people are preferred by customers;thus,employers will pay them higher wages than average-looking people.
• B) People who project an attractive personal appearance may be more intelligent than average-looking people;thus,employers will pay them higher wages than average-looking people.
• C) Average-looking people are preferred by customers;thus,employers will pay them higher wages than better-looking people.
• D) Employers discriminate in favor of better-looking people.

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Definitions:

Total Revenue

The total amount of money a firm receives from the sale of its goods or services, calculated as the quantity sold multiplied by the price per unit.

Buyers

Individuals or organizations that purchase goods or services for personal use, resale, or production.

Total Revenue

The total income received from sales of goods or services before any expenses are subtracted.

Elastic

A term used in economics to describe a situation where the quantity demanded or supplied of a good is sensitive to changes in its price.