Which of the following has not been identified by research that tries to address the self-selection issue regarding the returns to schooling?
A. When both a high school graduate and a college graduate are placed in the type of job that college graduates typically fill, the college graduate would be more productive.
B. In general, workers appear to choose schooling amounts that maximize lifetime income.
C. When both a high school graduate and a college graduate are placed in the type of job that high school graduates typically fill, the high school graduate would be more productive.
D. There are many kinds of ability that are rewarded in the workplace.
E. All of the above have been identified by the research on the returns to schooling.
Answer: E
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A) three computers and one computer. B) three computers and two computers. C) one-half computer and one-third computer. D) six computers and three computers. E) None of the above.
What is the slope of the price consumption curve for two goods, x and y, when preferences are measured by the utility function U(x,y) = x0.5y0.5, the price of good y is $10, income equals $100, and the price of good x increases from $5 to $10?
A) slope equals zero B) slope is -(1/2) C) slope is 1/2 D) slope is infinite