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George and Brad Are Waiters at a Local Restaurant

Question 403

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George and Brad are waiters at a local restaurant. The female customers prefer to be seated at the tables that George waits on because they think George is better looking than Brad. If George earns more than Brad because of his better looks, this is an example of


A) effort playing a key role in wage differences.
B) differences in human capital.
C) a beauty premium.
D) a compensating differential.

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