Use the distinction between rival and nonrival to explain the college premium
What will be an ideal response?
College graduates have acquired knowledge and skills that enable their interaction with other inputs — raw materials, capital goods, and other workers — to be quite productive. Employees working together enhance the contribution of each other's skills without using up anyone's skills. Indeed, the productive application of skills is a way to strengthen and acquire skill. The skills are nonrival among employees and over time (allowing for periods of rest). Nonetheless, a single worker can, at any one time, perform just one set of tasks for a particular employer. The skills are rival across employers and tasks. Thus, incentives guide the allocation of skilled workers among available employers and tasks. Workers whose skills make a large contribution in productive tasks will be sought by employers eager to offer a wage that is correspondingly high.
You might also like to view...
When the monetary base increases by $2 billion, the quantity of money increases by $10 billion. Thus, the money multiplier equals
A) 0.2. B) 5. C) 20.0. D) 0.5.
If you based your estimate on how long it took poor regions of the United States to catch up to the per capita incomes of the rest of the nation, how long do you believe it would take Eastern Europe to obtain per capita incomes comparable to those of Western Europe?
a. About one year. b. About five to ten years. c. About twenty five years. d. Several generations.