A worker who brings both labor and human capital to her job earns
a. both the wage rate for her labor and a share in the employer's profits.
b. both the wage rate for her labor and a market rate of return on her skills.
c. the going wage rate for her labor, the benefits of her capital accrue to her employer's owners.
d. both the going wage rate for her labor and annual bonuses based on the level of profits and her skills.
b. both the wage rate for her labor and a market rate of return on her skills.
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Average fixed cost is
a. the sum of variable and fixed costs b. total cost minus variable cost c. variable cost plus marginal cost d. total fixed cost per unit of output e. constant as output changes
Household savings rates:
A. vary enormously across countries. B. seem to be similar for countries within the same continent. C. are impossible to compare across countries. D. are remarkably similar across countries.
According to the textbook, the union wage premium for workers with the same amount of human capital is about ________.
A. 30 percent B. 20 percent C. 40 percent D. 10 percent
Lewis has $5,000 worth of bonds in Farrell’s Seed Company. Bonnie has 10,000 shares of preferred stock in the company, Jeff has 100,000 shares of common stock, and Val has 1 share of common stock. If Farrell’s Seed Company goes out of business, which obligation will it be required to meet first?
a. paying Bonnie the full value of her preferred stock b. paying Jeff the dividends on his common stock c. paying Lewis the full value of his bonds d. paying Val the full value for her share of common stock