Most economic models
a. incorporate the assumption of rational behavior on the part of economic actors.
b. incorporate the notion that people are usually reluctant to change their minds.
c. are meant to precisely duplicate reality.
d. assume that people often make sub-optimal choices.
a
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A bond that pays a high interest rate
A. is more secure than one that pays a low interest rate. B. is guaranteed by the U.S. government. C. reflects the higher risk that the issuer will default. D. will sell for a high price.
In a market economy,
a. there is a fixed economic pie to be divided among individuals. b. differences in incomes provide individuals with an incentive to supply resources that are highly valued by others. c. a central distributing agency carves up the economic pie and allocates slices to individuals. d. both a and b above are true.
James earns a degree from a top university and is hired by a prominent firm because executives at the firm believe that graduates of this university must have a high ability level or they would not have graduated. Which of the following theories of education do the executives believe?
a. signaling theory b. human-capital theory c. compensating-differentials theory d. All of the above are correct.
What are the alternative views to the human capital theory with respect to the role of education?
What will be an ideal response?