A signaling theory of education suggests that
a. people who attend college are more likely to capture a "beauty premium."
b. education is a signal of social status.
c. education does not necessarily increase productivity.
d. education will sever the link between innate ability and compensation.
c
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In case of a backward-bending labor supply curve:
a. the income effect of a higher wage offsets the substitution effect. b. the substitution effect of a higher wage offsets income effect. c. the substitution effect of a higher wage equals income effect. d. there is no income effect at a higher wage rate.
Refer to the information provided in Figure 5.5 below to answer the question that follows.
Figure 5.5Refer to Figure 5.5. As the price of good W decreased, the demand for good Y shifted from D1 to D2. The cross-price elasticity of demand between W and Y is
A. negative. B. zero. C. positive. D. indeterminate from this information.