Solved

Which Statement Best Explains the Cause of Wage Differential

Question 92

Multiple Choice

Which statement best explains the cause of wage differential


A) Additional education that increases a worker's wage necessarily increases the worker's productivity, and firms pay their workers based on their productivity.
B) If discriminating wage differentials persist in competitive markets, it is primarily because either consumers are willing to pay to maintain the discrimination or because government mandates it.
C) Efficiency wage theory explains that non-discriminatory employers pay lower wages to workers whom discriminatory employers refuse to hire.
D) Workers from the perfectly competitive market are paid a higher wage than those from other market structures.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions