Economists who study labor markets have discovered that
A)only about 5 percent of wage differences are related to chance.
B)ability is not difficult to measure but is largely insignificant in explaining wage differences.
C)work effort is difficult to measure but is not likely to contribute much to an explanation of wage differences.
D)ability, effort, and chance are likely to be significant contributors to wage differences.

Question

Quizplus · Accepted Answer

Economists who study labor markets have found that ability, effort, and chance all play a role in explaining wage differences. While ability can be measured and is significant, work effort is difficult to measure but still contributes to wage differences. Chance also plays a role, but it is not the main explanation for wage differences. Therefore, D is the best choice.

Economists Who Study Labor Markets Have Discovered That