The Most Important Reason for Why Some People Have Higher

question 11

Multiple Choice

The most important reason for why some people have higher incomes than others is

• A)employment discrimination.
• B)inheritances.
• C)property income.
• D)government transfer payments.
• E)differences in wages and salaries.

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Definitions:

Efficiency Wages

Wages set above the market level to increase worker productivity and reduce turnover.

Principal-Agent Problem

A dilemma in economics where one party (the agent) is able to make decisions on behalf of, or that impact, another party (the principal), potentially leading to conflicts of interest.

Derived Demand

Refers to the demand for a good or service that arises from the demand for another good or service.

Capital Resources

Assets used in the production of goods and services, such as buildings, machinery, equipment, and tools.