The premium on a college education increases when
(a) the market demand for knowledge and skilled workers decreases, and all else is held constant.
(b) the market supply of knowledge and skilled workers increases, and all else is held constant.
(c) the growth in the demand for knowledge and skilled workers outpaces the growth in supply.
(d) the growth in the supply of knowledge and skilled workers outpaces the growth in demand.
(c)
You might also like to view...
Holding everything else constant, a country's imports will decrease if the:
A) country's currency appreciates. B) country's currency depreciates. C) country's currency is revalued. D) none of the above.
The welfare cost of taxation _____
a. occurs because individuals try to avoid the tax to some degree b. is not the same thing as the excess burden of taxation c. occurs because individuals refuse to pay the tax d. cannot, in theory, be calculated
The law of diminishing marginal utility
a. is valid only after basic necessities (such as food and shelter) have been obtained b. says that marginal utility decreases as more of a good is consumed c. implies that spending on a good will decrease as more of that good is consumed d. says that marginal utility decreases as income increases e. implies that spending on a good decreases as income increases
Economic theory indicates that the amount consumed of a natural resource depends on
a. the price of the resource. b. consumer income. c. the price of substitute resources. d. all of the above.