In a hypothetical country, the average wage of five 40-year-old citizens with college education is $36,896, and the average wage of five 40-year-old citizens with high school education is $25,864
What is the returns-to-college education in the country? Is there any limitation of this analysis? Explain your answer.
Dividing the average salary of 40-year-old college graduates by the average salary of 40-year-old high school graduates results in $36,896/$25,864 = 1.426. Hence, college education is likely to raise a citizen's income by 42.6 percent.
Yes, there is a major limitation of this analysis. It does not make sense to generalize overall returns to education on the basis of a sample representing a single age grou
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A) 40. B) 50. C) 250. D) 400.
The above figure shows a labor market. Before the minimum wage of $8 an hour is imposed, employment equals ________ workers; after the minimum wage of $8 an hour is imposed, employment equals ________ workers
A) 80,000; 40,000 B) 40,000; 80,000 C) 60,000; 40,000 D) 60,000; 80,000 E) 80,000; 60,000
Which of the following would not be included in the expenditure category called investment expenditures?
A) a purchase of shares of preferred stock B) spending on new houses C) a purchase of a copy machine by FedEx Office D) the cars held in inventory on a local Ford dealer's lot
When a perfectly competitive firm experiences positive economic profits in the short run
A. the high barriers to entry prevent further competition. B. existing firms exit the industry. C. new firms enter the industry. D. firms have no incentive to exit or enter the industry.