For each of the scenarios in the following table, indicate the most likely reason for the difference in earnings. 

Scenario	Differences in Human Capital	Compensating Differential	Differences in Natural Ability	Labor Unions
Two security guards have the same amount of schooling and work experience, but earn different wages. One of them works for a prison and earns an annual wage of $52,000 per year. Another works for a museum and earns an annual wage of $31,000 per year.
Major league soccer players earn more than minor league soccer players.
A law firm hires Teresa, a recent graduate from law school, and pays her an annual wage of $40,000. It also hires Nick, a second-year law student, and pays him an annual wage of $30,000. Teresa and Nick were born in the same country, attended the same university, and studied in the same graduate program.

2. Alternative explanations of wage disparities

Suppose that a professor of labor economics finds that one of their research subjects has earned significantly higher wages throughout their lifetime than would be predicted by standard measured variables. The economist also notes that each of the subject's job roles was linked to social connections established at their family's yacht club.

Which item from the following list most likely explains this individual's high earnings?

Effort

Efficiency wages

Chance

Compensating differentials

5. Discrimination in the labor market

The following table exhibits the name, gender, height, and minimum wage 10 people are willing to accept to work as human resource specialists at a large financial firm.

Name	Gender	Height	Minimum Wage
(Inches)	(Dollars per week)
Eileen	F	66	$291
Susan	F	66	$315
Becky	F	68	$339
Raphael	M	70	$352
Alex	M	70	$376
Eileen	F	66	$400
Clancy	M	71	$413
Manuel	M	70	$437
Hubert	M	63	$450
Kate	F	68	$474

The lowest weekly wage that the financial firm can spend in order to hire five human resource specialists is $_______

Suppose the hiring director of the financial firm prefers taller candidates because they think it will increase revenue, and so they impose a requirement that all newly hired human resource specialists must have a height of at least 67 inches. With this mandate in place, the weekly wage rate the financial firm now must pay in order to hire five human resource specialists increases by $_____ 

.