A Small University Employs Two Economists

question 26

Multiple Choice

A small university employs two economists.Rob has been employed by the university for 15 years,and Nasrin has been employed for 1 year.Rob's salary is significantly higher than Nasrin's,although both have their doctoral degrees in economics.Each professor averages one publication per year,and both are excellent teachers.Given this information,the wage difference is BEST explained by:

• A) compensating differentials.
• B) differences in human capital.
• C) discrimination.
• D) differences in talent.

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Definitions:

Self-Talk

is the internal dialogue that individuals have with themselves, which can influence feelings and behaviors.

Self-Fulfilling Prophecy

A belief or expectation that causes itself to become true due to the behavior it inspires.

Self-Efficacy

A person’s belief in his or her ability to perform a specific task in a particular situation.

Upright Bass

A large stringed musical instrument held vertically and played with a bow or by plucking the strings, commonly used in jazz and classical music.