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
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In the figure above, in which country do the highest-income 30 percent of households have the highest fraction of the nation's income?
A) Country A B) Country B C) Country C D) It is impossible to answer the question without more information.
The marginal benefit and marginal private cost curves for aphrodisiacs are given as follows:
MB = 200 - Q MPC = Q In addition to private costs, there is a marginal external cost of $10 per unit of output. What is the efficient level of output? A) 0 B) 55 C) 95 D) 100 E) none of the above