According to research by William Shepherd, competition has increased in U.S. industries since World War II due to

Fiona's hourly wage increases from $8 to $10 . Which of the following describes a consequence of the increase in Fiona's wage?

a. The opportunity cost of Fiona's leisure time has decreased. b. Fiona may choose to work fewer hours due to the increase in her wage. c. If Fiona's labor supply curve is upward sloping, she will choose to work fewer hours. d. Both a and b are correct.

Jake and Harry each have 130 hours of college credit from Impressive University. Each has 30 hours of economics. Jake has a bachelor's degree, while Harry is 3 credits short of required physical education classes and therefore does not have a degree. Each of them has one year of experience as a market analyst for ABC Company. Assuming that the physical education class would not enhance Harry's

job performance, if Jake earns a higher salary than Harry, the ABC Company may subscribe to the a. human capital theory. b. discrimination theory. c. compensating differential theory. d. signaling theory.