Figure 3.4

-In Figure 3.4, the reason for the wage differential could be the fact that
A) market A is the market for a risky occupation.
B) market B consists of unskilled labor.
C) market A consists of workers with more human capital.
D) market B consists of workers with less human capital.
E) all of these are true.

Question

Figure 3.4
 
-In Figure 3.4, the reason for the wage differential could be the fact that
A) market A is the market for a risky occupation. 
B) market B consists of unskilled labor. 
C) market A consists of workers with more human capital. 
D) market B consists of workers with less human capital. 
E) all of these are true.

Quizplus · Accepted Answer

The wage differential between two markets can be attributed to various factors, including the risk associated with the occupation, the skill level or human capital of the workers, and the demand and supply dynamics of each market. Options A, B, C, and D each describe a plausible reason for wage differences, suggesting that all of these factors could simultaneously contribute to the observed wage differential.

Figure 3.4 -In Figure 3.4, the Reason for the Wage Differential Could