What is implied when the wage-schooling profile is drawn as a concave (i.e., increasing at a decreasing rate) function?
A. Average wages fall as years of schooling increases.
B. The cost of schooling decreases but at an increasing rate.
C. The cost of schooling increases but at a decreasing rate.
D. The marginal return to schooling increases as years of schooling increases.
E. The marginal return to schooling is positive but falling as years of schooling increases.
Answer: E
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Does the money demand curve have a positive slope or a negative slope? Why does it have this slope? Explain why an increase in the variable on the vertical axis of the money demand curve causes either an increase or a decrease in the variable on
the horizontal axis of the money demand curve.
Why are losses acceptable in the short run but not the long run?
What will be an ideal response?
If a resource is purchased and sold in a perfectly competitive market:
a. there are a large number of resource suppliers and the resources are identical. b. there is a single buyer of resource and the resources are identical. c. there is a single buyer of resource and the resources are differentiated. d. there are a large number of resource suppliers and the resources are differentiated. e. there are a large number of resource suppliers and there is no entry or exit.
Which of the following is least likely to be an example of peak/off-peak pricing?
A. Breakfast cereals B. Hotels C. Toll roads D. Electricity