Sue has human capital worth $500,000 and nonhuman capital of $100,000. Todd has human capital worth $10,000 and nonhuman capital of $50,000. The return on each type of capital is 10 percent a year
Sue's income is ________ and Todd's income is ________. A) $10,000; $5,000
B) $50,000; $1,000
C) $600,000; $60,000
D) $60,000; $6,000
D
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France has a higher natural rate of unemployment than the United States. This suggests that
a. France is at a higher point on its long-run Phillips curve and so has higher inflation than the United States. b. France is at a lower point on its long-run Phillips curve and so has lower inflation than the United States. c. France's Phillips curve is to the left of that of the United States, possibly because they have higher inflation. d. France's Phillips curve is to the right of that of the United States, possibly because they have more generous unemployment compensation.
A constant-cost industry has an infinitely elastic long-run supply curve.
Answer the following statement true (T) or false (F)
Answer the following questions true (T) or false (F)
1. Economic efficiency is a market outcome in which the marginal benefit to consumers is equal to the marginal cost of production and the sum of consumer surplus and producer surplus is maximized. 2. If marginal benefit is greater than marginal cost, output is inefficiently high. 3. Deadweight loss refers to the reduction in economic surplus resulting from a market not being in competitive equilibrium.
New growth theory suggests that the accumulation of knowledge capital can be slowed because knowledge is both nonrival and nonecludable. How does the federal government intervene in the market to increase the amount of knowledge capital?
A. Public education B. Patents C. Subsidies D. All of the above E. A and B only