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:

Short-Term Memory

A limited capacity store that can maintain unrehearsed information for about 20 to 30 seconds.

Google Effect

The tendency to forget information that can be easily found using internet search engines like Google, affecting how memory is managed.

Rely

To depend on or trust in someone or something for support, help, or maintenance.

Episodic Memories

Memories of specific events or episodes in one's life, including the contextual details and emotions associated with them.