Tom and Eric went to trade school at the same time. Each graduated with an associate's degree. They have received similar performance evaluations. Eric's employer is not a good business manager, and the sales manager lost a major deal. Because of the decrease in profits, the employees did not receive raises last year. Tom's employer is a savvy business manager and the sales manager is experienced and works hard. If Tom has higher earnings than Eric, the difference is most likely a function of
A)chance.
B)differences in human capital.
C)differences in signaling.
D)discrimination.

Question

Quizplus · Accepted Answer

The difference in earnings is most likely due to chance, as both Tom and Eric have similar qualifications and performance evaluations, but their employers' business management skills differ, affecting their earnings.

Tom and Eric Went to Trade School at the Same