Why wages differ my last chance to get right, please answer correctly For each of the scenarios in the following table, indicate the most likely reason for the difference in earnings.ScenarioDifferences in Human CapitalCompensating DifferentialDifferences in Natural AbilityLabour UnionsTwo security guards have the same amount of schooling and work experience, but earn different wages. One of them works for a prison and earns an annual wage of $55,000 per year. Another works for a museum and earns an annual wage of $34,000 per year. An economics consulting firm hires Rina, a recent PhD graduate in economics, and pays her an annual wage of $75,000. It also hires Bob, a recent master's graduate degree in economics, and pays him an annual wage of $61,000. Major-league hockey goalies earn more than minor-league hockey goalies.

A wage disparity is a difference in pay between people with similar skills working in different…

Answered: Why wages differ my last chance to…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Why wages differ

my last chance to get right, please answer correctly

For each of the scenarios in the following table, indicate the most likely reason for the difference in earnings.

Scenario	Differences in Human Capital	Compensating Differential	Differences in Natural Ability	Labour Unions
Two security guards have the same amount of schooling and work experience, but earn different wages. One of them works for a prison and earns an annual wage of $55,000 per year. Another works for a museum and earns an annual wage of $34,000 per year.
An economics consulting firm hires Rina, a recent PhD graduate in economics, and pays her an annual wage of $75,000. It also hires Bob, a recent master's graduate degree in economics, and pays him an annual wage of $61,000.
Major-league hockey goalies earn more than minor-league hockey goalies.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions