The most important source of wage differentials are ?
Correct answer: D. skills
- A. regional variation
- B. unionization
- C. relative danger
- D. skills
Explanation
Differences in skills and human capital are generally the most important systematic source of wage differentials because more productive or scarce skills command higher pay. Regional conditions, unions and job danger also matter but are narrower influences.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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