Which of the following might explain the beauty premium found by labor economists Hamermesh and Biddle?
a. Good looks are an innate ability for some jobs, which results in higher productivity and higher wages.
b. Good looks may be an indirect measure of other types of ability such as attention to detail.
c. If better-looking people earn more than average-looking people, employers may be discriminating based on personal appearance.
d. All of the above could explain the beauty premium.
d
You might also like to view...
A market with one seller, considerable influence over price, high barriers to entry, a homogeneous product, and non-price competition to allow for price discrimination is known as
A. perfect competition. B. monopolistic competition. C. oligopoly. D. monopoly.
Total revenues increase as output increases along sections of the demand curve that are:
A. downward sloping. B. price elastic. C. price inelastic. D. upward sloping.
An economy's production possibilities frontier is fixed in the long run
a. True b. False
Health care that actually harms the patient, such as an adverse reaction to a prescription drug is called:
a. adverse selection. b. morbidity-related response. c. moral hazard. d. defensive medicine. e. iatrogenic disease