Differences in Human Capital Are Likely to

question 304

Multiple Choice

Differences in human capital are likely to

• A)be unrelated to wage rate differences across gender classifications, since both men and women are required to complete requirements for a high school diploma.
• B)be most helpful in explaining age discrimination, but unhelpful in explaining race discrimination.
• C)explain some of the differences in average wage rates across age classifications.
• D)explain all of the differences in average wage rates across gender classifications.

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Definitions:

Derived Demand

Demand that exists not for the good or service itself, but for the goods or services produced by it. This demand is dependent on the demand for another product or service.

Hair Stylist

A professional who specializes in cutting, coloring, and styling hair to improve or maintain a person's appearance.

Salon Owner

An individual who owns and manages a salon, responsible for its operational, financial, and administrative aspects.

Marginal Revenue Product

Marginal Revenue Product measures the additional revenue generated from employing one more unit of a resource.