A Competitive Market May Be Consistent with a Discriminatory Wage

question 371

Multiple Choice

A competitive market may be consistent with a discriminatory wage differential if

• A)firms' customers have discriminatory preferences.
• B)the wage differential is explained by a compensating differential.
• C)the wage differential is explained by differences in human capital.
• D)All of the above are correct.

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Definitions:

Self-Actualization

The realization or fulfillment of one's talents and potentialities, often considered as the drive behind personal growth and self-improvement.

Self-Transcendence

A state or experience beyond the personal self, often involving spiritual or peak experiences that transcend ordinary consciousness.

Intrinsic Motivation

Motivation that is driven by an interest or enjoyment in the task itself, rather than external pressure or reward.

Extrinsic Motivation

Motivation stimulated by external incentives like financial gain, recognition, academic scores, and commendation.