In Empirical Analyses of Factors That Help Explain Wages

question 317

Multiple Choice

In empirical analyses of factors that help explain wages,

• A)effort and ability are not likely to contribute to large differences in wages in the U.S. economy.
• B)economists typically find that measurable factors explain less than half of the variation in wages.
• C)economists typically find few factors that are not explicitly measurable.
• D)unmeasurable influences on wage differences are found to be quite small.

---

Definitions:

Bond Carrying Amount

The net value of a bond on a balance sheet, which may differ from its face value due to amortization or market changes.

Premium Amortization

The process of gradually reducing the premium paid on bonds purchased above their face value over the life of the bonds.

Straight-Line Method

The straight-line method is a technique for calculating depreciation of an asset by evenly spreading its cost over its expected useful life.

Semiannual Interest

Semiannual interest refers to the interest payment made two times a year on a loan or bond.