In the U.S., each additional year of schooling has historically raised a person's wage on average by about
a. 5 percent. In less developed countries the gap between the wages of educated and uneducated workers is smaller.
b. 10 percent. In less developed countries the gap between the wages of educated and uneducated workers is smaller.
c. 5 percent. In less developed countries the gap between the wages of educated and uneducated workers is larger.
d. 10 percent. In less developed countries the gap between the wages of educated and uneducated workers is larger.
d
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The demand for wheat from farm A is perfectly elastic because wheat from farm A is
A) a perfect complement for wheat from farm B. B) a normal good. C) a perfect substitute for wheat from farm B. D) an inferior good.
Which of the following best describes the market reaction if a city restricts the number of firms that are allowed to operate in a market?
A) The market supply curve shifts to the left. B) The market demand curve shifts to the left. C) Quantity supplied increases because price increases. D) Price decreases.
The rapid growth rates of less developed countries (LDCs) after adopting institutions and policies more favorable to economic freedom and voluntary exchange is not surprising when one considers that
a. LDCs can emulate and borrow successful practices and technologies from other, more developed nations. b. foreign aid payments to a less developed country are nearly always expanded rapidly when the country begins to increase its income level. c. the governments of LDCs play a larger role in economic planning, when economic freedom rises. d. economic theory indicates that improvements in institutions normally result from economic growth, rather than growth stemming from better institutions.
Which of the following is a strong assumption for static and finite distributed lag models??
A. ?Sequential exogeneity B. Strict exogeneity C. ?Dynamic completeness D. Homoskedasticity