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.

Question

Quizplus · Accepted Answer

The economic explanation for the "beauty premium" is that employers pay above-average-looking women more than average-looking women because customers prefer to deal with better-looking women. This leads to higher sales or more satisfied customers, which ultimately benefits the employer.

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