Which term refers to the pay disparity that can exist between different demographic groups in the labor market?

• A. Cooperative
• B. Fringe benefits
• C. Wage gap
• D. Right-to-work law

Answer: (C)

The main idea is a wage gap. This term describes the difference in earnings between different demographic groups in the labor market, such as by gender or race. It highlights that some groups, on average, earn less than others, which can arise from a mix of factors like discrimination, occupational segregation, and differing access to opportunities.

The other terms don’t fit this concept: a cooperative is a member-owned business organization; fringe benefits are additional non-wage benefits like health insurance or retirement plans; and right-to-work laws concern union membership and collective bargaining rather than pay differences across groups.