Economic theory suggests that college graduates receive higher wages than those with only a high school education because
a. the supply of high school graduates is small relative to the demand for their labor.
b. college graduates must be paid higher wages because their educational costs were higher.
c. college graduates are more productive.
d. college graduates have formed stronger unions.
c. college graduates are more productive.
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Human capital is the
A) machinery used by humans to produce GDP. B) technology used by humans to produce GDP. C) skill and knowledge accumulated by humans. D) plant and equipment produced by humans and not by machines.
A student has a job that pays a wage rate of $10 per hour. The night before an economics exam, the student has set aside four hours to study for the exam, estimating that for each hour spent studying, her grade will rise by 5 points
That night, she gets a call from her employer to come to work for a wage rate of $15 per hour for that night. She decides to work for three hours and earn an extra $45.00. The next day she takes the test and gets a grade of 75. The opportunity cost for her work is A) the $45.00 she earned. B) the 15 extra points she estimates that she could have earned on the exam if she had studied the extra three hours. C) the three hours she did not study. D) the entire four hours she set aside for studying.
For which of the following investment activities does the law clearly define the parties' underlying rights?
a. Construction of a swimming and boating club on a deserted lake. b. Planting apple trees in a public garden. c. Using scrap from neighborhood trash disposal site to create wrought iron furniture. d. Construction of a multi-storied building on an inherited property.
If the natural rate of unemployment falls,
a. both the short-run and long-run Phillips curves shift left. b. the short-run Phillips curve shifts left, the long-run Phillips curve is unchanged. c. the short-run Phillips curve is unchanged, the long-run Phillips curve shifts right. d. the short-run and the long-run Phillips curves shift right.