Some take issue with the human capital argument that employers pay more for college graduates because firms recognize the value of human capital. What are two alternative explanations for why college grads receive higher pay?
What will be an ideal response?
Education is a sorting device for factors that lead to job success. Ability, intelligence, and perseverance are attributes of college graduates and correlate likely with job success. A second view is that skilled employment is only open to the educated.
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A good for which demand decreases when income decreases is known as a(n) ________ good
A) normal B) inferior C) complementary D) substitute
Which of the following varies along a given demand curve?
a. consumer preferences b. prices of substitutes c. prices of complements d. the price of the good itself e. income
Which of the following must be true if a price-searcher firm is operating at the profit-maximizing output rate?
a. The marginal cost of producing the last unit is greater than the marginal revenue derived from its sale. b. The marginal cost of producing the last unit is no greater than the marginal revenue derived from its sale. c. The total cost of producing all units is no greater than the total revenue derived from the sale of the units. d. The total cost of producing all units is less than the total revenue derived from the sale of the units.
Table 15.1Table 15.1 shows the preferred budget in millions for a new sports facility and the number of thousands of voters in a community who prefer that budget. Tom proposed a budget of $6 million while Mary proposed a budget of $3 million. Which of the two candidates will be elected if everyone votes?
A. Tom B. Mary C. It will be a tie. D. The outcome of the election cannot be predicted.