Differences in marginal revenue products are the most important factor in explaining wage differences.Other factors that explain wage differences include all but one of the following.Which factor does not help explain differences in wages?
A)cognitive dissonance
B)compensating differentials
C)discrimination
D)labor unions

Question

Quizplus · Accepted Answer

Cognitive dissonance does not help explain differences in wages, as it is a psychological concept related to the discomfort experienced when holding conflicting beliefs or behaviors. This does not directly relate to the factors that determine wage differences.

Differences in Marginal Revenue Products Are the Most Important Factor