If ability is positively related to schooling, then estimating the returns to education directly from the wage-schooling profile will likely
A. overestimate the average wage.
B. underestimate the average discount rate.
C. underestimate the return to schooling.
D. overestimate the return to schooling.
E. underestimate the average wage.
Answer: D
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Refer to Figure 8.6, which shows just three of a firm's various possible short-run average cost curves. Suppose the firm increases its output from 130 units to 160 units. Which of the following statements is true?
A. The average cost of producing the 160 units would be $90 if the firm expected the increase in production to be permanent.
B. The average cost of producing the 160 units would be $80 if the firm expected the increase in production to be permanent.
C. The average cost of producing the 160 units would be $175 if the firm expected the increase in production to be temporary.
D. The average cost of producing the 160 units would be $80 if the firm expected the increase in production to be temporary.
If the nominal interest rate was 12 percent and the inflation rate was 10 percent in 1980, while the nominal interest rate was 7 percent and the inflation rate was 2 percent in 2011, then
What will be an ideal response?
The extent of job creation and job destruction is
What will be an ideal response?
Distinguish between a voluntary export restraint and a quota
What will be an ideal response?