In 1972, a very controversial study asserted that income differences among individuals did not depend on genetic differences in reasoning ability, or differences between schools, or family background.Moreover, the effects of level of schooling are much less than previously understood.After controlling for all of these background variables, much of the variation in earnings appeared to be random.From this analysis, one might reach the very controversial conclusion that earnings depended to a very great extent on
A)human capital.
B)ability.
C)schooling.
D)luck.

Question

Quizplus · Accepted Answer

The study suggests that after accounting for factors such as genetic differences in reasoning ability, differences between schools, and family background, much of the variation in earnings is random. Therefore, the best choice is luck.

In 1972, a Very Controversial Study Asserted That Income Differences