A difference in wages between a highly-educated worker and a less-educated worker
A)may be due to a difference in the amounts of human capital between the workers.
B)may be a signal that the market is indifferent to a worker's level of human capital.
C)is considered unfair by economists.
D)is considered unfair by everyone.

Question

Quizplus · Accepted Answer

A difference in wages between a highly-educated worker and a less-educated worker may be due to a difference in the amounts of human capital between the workers, which refers to the skills, knowledge, and experience that a worker possesses that increases their productivity and earning potential. This is a commonly accepted explanation given by economists and is considered a natural outcome of a market-based economy where wages are determined by supply and demand of labor. It is not considered unfair by economists or everyone.

A Difference in Wages Between a Highly-Educated Worker and a Less-Educated