The human capital model assumes that
A. education is a productive investment that raises total output.
B. education does not change potential productivity, but it does save resources by reducing sorting costs for employers.
C. the educational system is a very expensive process to legitimize the intergenerational transmission of privileged status.
D. such factors as the love of learning should be included in the analysis.
Answer: A
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A major difference between stocks and bonds is that
A) bonds pay their owners dividends while stocks pay interest. B) bonds pay their owners interest while stocks pay dividends. C) the interest on a bond depends on the earnings of the corporation and is not guaranteed while dividends on stock are legally required. D) bonds represent ownership while stock represent debt.
Keynesians:
a. accept the countercyclical policy of doing nothing, that is, allowing market forces to work. b. believe that the level of aggregate demand in the 1930s was sufficient to generate full employment. c. accept the fact that policymakers should eliminate inflation first before focusing on unemployment. d. focus on increasing aggregate demand in order to stimulate the economy. e. were prepared for the events that beset our economy in the 1970s and 1980s.