Lawyers generally earn much higher incomes than fast food workers. How would we use the Circular Flow to explain this?(1 point)
Responses
a The government sets wages for lawyers but not wages for fast food workers.
b All workers sell their human capital in the resource market, and lawyers typically have more human capital than fast food workers.
c Households sell land to firms in the resource market, and lawyers usually live in bigger houses with bigger yards than fast food workers.
d All workers sell their labor in the resource market, and lawyers do more physically demanding work than fast food workers.
1 answer
b All workers sell their human capital in the resource market, and lawyers typically have more human capital than fast food workers.