Which of the Following Is an Economic Explanation for the "Beauty

question 342

Multiple Choice

Which of the following is an economic explanation for the "beauty premium"?

• A)Employers pay very attractive women less than average-looking women because they believe them to be less intelligent.
• B)Employers pay above-average-looking men more than above-average-looking women.
• C)Employers pay above-average-looking women more than average-looking women because customers prefer to deal with better-looking women.
• D)Employers pay above-average-looking men more because they signal to the market that they are willing to spend more money on personal grooming, a sign of wealth and stability.

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Definitions:

Reversing Adjustments

Reversing Adjustments are accounting entries made at the beginning of a new accounting period to cancel out adjusting entries made at the end of the previous period to simplify financial reporting.

Record Depreciation Expense

The process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Allocate Prepaid Insurance

involves distributing the cost of insurance premiums over the period that the insurance coverage relates to, recognizing it as an expense over time rather than all at once.

Accrue Salaries Payable

Accrue Salaries Payable involves recording the salaries earned by employees that have not yet been paid, recognizing the liability before the cash is disbursed.