The wage-schooling locus fails to allow researchers to test the theory that people choose education levels to maximize lifetime earnings because of self-selection. In this context, self-selection refers to
A. people letting their ability dictate, in part, how much education they complete.
B. firms paying more educated workers a higher wage than they pay less educated workers.
C. college graduates selecting their occupation later in life.
D. firms hiring workers of varying ability.
E. college students completing high-wage majors.
Answer: A
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A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
With which country did the Debt Crisis of the early 1980s begin?
A) France B) Mexico C) Argentina D) Japan E) Germany
The contributive standard of income distribution is met by
A) setting wages according to marginal productivity. B) having a highly progressive income tax. C) having the government determine all wages. D) using local committees to determine the needs of families in the area.
The slope of the demand curve and the price elasticity of demand are
a. basically the same thing b. determined by supply c. are derived from production and distribution costs d. different because slope is based on absolute changes and elasticity is based on percentage changes e. implicit in the shape of the supply curve