Question

3. Why wages differ For each of the scenarios in the following table, indicate the most Wely reason for the difference in earnings. Differences in Training, Education, Age, and Experience Differences in Risk Differences in Ability Scenario Discrimination 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 $51,000 per year. Another works for a museum and earns an annual wage of $32,000 per year ook Major league baseball pitchers earn more than minor league baseball pitchers o A law firm hires Cho, a recent graduate from law school, and pays her an annual wage of $40,000. It also hires Yakov, a second-year law student, and pays him an annual wage of $30,000. Cho and Yakov were born in the same country, attended the same university, and studied in the same graduate program. 0 0 0

Answer 1

a) "B"

They have different wages because of diferent level of risk that their jobs pose.

b) "C"

There is difference in the ability of these players.

c) "A"

there is a difference in the educational ability in the market.