The premium on a college education increases when
(a) the market demand for knowledge and skilled workers decreases, and all else is held constant.
(b) the market supply of knowledge and skilled workers increases, and all else is held constant.
(c) the growth in the demand for knowledge and skilled workers outpaces the growth in supply.
(d) the growth in the supply of knowledge and skilled workers outpaces the growth in demand.
(c)
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If firms are earning economic profit in a monopolistically competitive market, which of the following is most likely to happen in the long run?
A) Some firms will leave the market. B) Firms will join together to keep others from entering. C) New firms will enter the market, thereby eliminating the economic profit. D) Firms will continue to earn economic profit.
Which of the following is NOT counted as an economic resource?
a. Land. b. Physical labor. c. Mental abilities of labor. d. Money supply. e. Entrepreneurship.