The Fact That Wage Differentials Continue to Exist Across Different

question 65

Multiple Choice

The fact that wage differentials continue to exist across different groups of workers leads economists to believe that

• A) discrimination by customers is the most common type of economic discrimination.
• B) differences in human capital and job characteristics must be important in explaining the differences in wages.
• C) firms apparently are not profit maximizers.
• D) the market has failed to properly allocate wages to different workers.

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Definitions:

Healthy Diet

A balanced consumption of food that provides the necessary nutrients to support overall health and body function.

Mercury

A heavy metal that can be found in the environment and in certain foods, such as fish, and is toxic to humans in high amounts.

Pesticides

Chemical substances used to eliminate or control pests that threaten agriculture, public health, or comfort.

Iodine

A trace element essential for the synthesis of thyroid hormones, which regulate metabolism, growth, and development.