Why do labor economists often find it difficult to estimate the ceteris paribus return to education, in terms of wage, using non-experimental data?
A. Education level in non-experimental data is probably dependent on other omitted factors that also affect wage.
B. In a non-experimental setting,education level is often difficult to measure.
C. Wage is often reported unreliably and inaccurately.
D. Experience, another factor that also affects wage, is generally difficult to measure.
Answer: A
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If productivity is growing at some sustained rate g, then output and capital per worker ________
A) are growing at the same rate g, in a stable steady state B) are growing faster than g, because improving technology encourages a higher rate of saving and investment C) are growing slower than g, because some of the new capital is merely replacing obsolete capital D) are growing faster than g, because productivity does not suffer from diminishing marginal product
If the firm hires 5 workers, the average cost equals
a. $250 b. $50 c. $5 d. Need more information