Which theory is supportive of the idea that increasing educational levels for all workers would raise all workers' productivity and therefore their wages?
a. the theory of compensating differentials
b. the efficient-market hypothesis
c. human-capital theory
d. signaling theory
c
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The federal income tax _______________ compared to a state sales tax.
A. has a higher administrative burden B. has a lower administrative burden C. is less complex D. is administered basically the same as
Which of the following statements explains the vicious circle of poverty?
a. By investing in education and infrastructure at the same time, the country can overcome the problems of poverty. b. Poverty arises out of the lack of investment, but countries cannot invest because they are poor. c. A nation can shift its production possibilities curve inward by shifting more resources into the production of capital goods. d. A nation can shift its production possibilities curve outward by shifting more resources into the production of consumer goods. e. There are dual economies in the world: Some are meant to be rich and others are meant to be poor.
If a 10 percent rise in price leads to a reduction in quantity demanded of more than 10 percent,
a. demand is elastic. b. demand is inelastic. c. elasticity of demand is unitary. d. None of the above is correct.
Approximately what fraction of total income in the US economy comes from labor earnings?