Asked by DYLAN HOLLOWAY on Jul 07, 2024

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Which of the following explains why soccer players make millions of dollars in Europe but do not in the United States?

A) Discriminatory rules established by the government
B) Compensating wage differentials for living in Europe
C) Discriminatory preferences on the part of U.S.sports fans for other sports
D) Efficiency wages paid to European players to enhance on-field performance

Compensating Wage Differentials

Differences in wage rates due to the non-monetary aspects of different jobs, such as riskiness or social value.

Soccer Players

Individuals who participate competitively in soccer, a team sport involving a spherical ball played between two teams.

Efficiency Wages

Wages set above the market equilibrium by employers to boost employee productivity, morale, and loyalty, and to reduce turnover.

  • Understand how consumer preferences can influence market outcomes related to discrimination.
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Verified Answer

AB
Auriel BeattyJul 14, 2024
Final Answer :
C
Explanation :
Soccer players make millions in Europe due to the high demand and popularity of the sport there, unlike in the United States where other sports like American football, basketball, and baseball are more popular among fans. This difference in fan preference affects the revenue and consequently the wages of players in the respective sports.