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AP® Microeconomics

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Moderate

Factor Market for Labor: Wage Differentials

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Which of the following BEST explains why a window washer who works cleaning windows on a skyscraper would earn higher wages than someone who cleans windows on typical suburban homes?

A

Compensating differences.

B

Non-competing groups.

C

Discrimination.

D

Government-set minimum wage.

E

Progressive income tax.