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 differentials
B) compensating differentials
C) discrimination
D) labour unions

Question

Quizplus · Accepted Answer

Cognitive differentials do not help explain differences in wages as they refer to differences in mental abilities, which are not directly related to wage determination.

Differences in Marginal Revenue Products Are the Most Important Factor