Use the distinction between rival and nonrival to explain the college premium
What will be an ideal response?
College graduates have acquired knowledge and skills that enable their interaction with other inputs — raw materials, capital goods, and other workers — to be quite productive. Employees working together enhance the contribution of each other's skills without using up anyone's skills. Indeed, the productive application of skills is a way to strengthen and acquire skill. The skills are nonrival among employees and over time (allowing for periods of rest). Nonetheless, a single worker can, at any one time, perform just one set of tasks for a particular employer. The skills are rival across employers and tasks. Thus, incentives guide the allocation of skilled workers among available employers and tasks. Workers whose skills make a large contribution in productive tasks will be sought by employers eager to offer a wage that is correspondingly high.
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If by purchasing more apples and fewer oranges you increase your total utility, then apples must be cheaper than oranges
Indicate whether the statement is true or false
Under a fixed exchange-rate system, a large fall in the market price (the exchange rate value) of a currency is called a(n) ________ of that currency.
A. revaluation B. depreciation C. devaluation D. appreciation
Refer to Scenario 9.10 below to answer the question(s) that follow. SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.Refer to Scenario 9.10. Weekly total revenue is
A. $1,600. B. $2,000. C. $3,600. D. $5,400.
Which of the following statements about the marginal rate of substitution is NOT correct?
A) It measures the number of units of the good on the horizontal axis that a consumer must be compensated with to give up a unit of the good on the vertical axis, while remaining on the same indifference curve. B) It is measured by the slope of the indifference curve. C) It decreases in value when moving downward along a typical-shaped indifference curve. D) It is constant for goods that are perfect substitutes.