Some take issue with the human capital argument that employers pay more for college graduates because firms recognize the value of human capital. What are two alternative explanations for why college grads receive higher pay?
Education is a sorting device for factors that lead to job success. Ability, intelligence, and perseverance are attributes of college graduates and correlate with likely job success. A second view is that skilled employment is only open to the educated.
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If the BLS included all marginally attached workers as being unemployed, the ________ would be __________
A. unemployment rate; higher B. labor force; unchanged C. labor force participation rate; lower D. unemployment rate; lower
Crops that are grown primarily to sell, rather than to consume, are referred to as
a. staples b. subsistence crops c. cash crops d. market crops e. none of the above
The PPP theory fails in reality for all of the following reasons EXCEPT
A) transport costs. B) monopolistic or oligopolistic practices in goods markets. C) the inflation data reported in different countries are based on different commodity baskets. D) restrictions on trade. E) inflation rates are unrelated to money supply growth.
A common theme in the discussions of the airline, soft drink, doughnut, and express delivery industries is that oligopolistic firms tend to compete:
A) strictly on the basis of price and nothing else. B) strictly on the basis of cost minimization. C) primarily on the basis of product differentiation and price. D) primarily by erecting barriers into the market.