PRINC OF ECONOMICS PKG >CUSTOM<
PRINC OF ECONOMICS PKG >CUSTOM<
7th Edition
ISBN: 9781305018549
Author: Mankiw
Publisher: CENGAGE C
Question
Book Icon
Chapter 19, Problem 1CQQ
To determine

Example of human capital.

Expert Solution & Answer
Check Mark

Answer to Problem 1CQQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b)

Education is an important human capital because it represents an expenditure of resources at one time to raise productivity in the future. Since studying latest developments in computer programming enhanced his productivity that enabled him to attain higher income in future, it is considered A human capital. Thus, option ‘b’ is correct.

Option (a)

Compensating differential is the difference in wages that arise to offset the nonmonetary characteristics of different jobs. So option ‘a’ is incorrect.

Option (c)

Under signaling, the choice of being a math teacher is better than spending time for studying. Hence option ‘c’ is incorrect.

Option (d)

There is no mention about receiving above the equilibrium level wages; option ‘d’ is incorrect.

Economics Concept Introduction

Concept Introduction:

Human capital: It is the accumulations of investments in people in the form of education, on-the-job training, etc.

Compensating differential: It is the difference in wages that arise to offset the nonmonetary characteristics of different jobs.

Efficiency wages: It is the above-equilibrium wages paid by firms to increase worker productivity.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
General Accounting Question solution and give me Blank ? C
It is possible to use transformational leadership strategies to reach unethical objectives.  Traditional leadership theories and morals standards are not adequate to help employees solve complex organizational issues. For the statement above, argue in position for both in favor or opposed to the statements.
Discuss the preferred deterrent method employed by the Zambian government to combat tax evasion, monetary fines. As noted in the reading the potential penalty for corporate tax evasion is a fine of 52.5% of the amount evaded plus interest assessed at 5% annually along with a possibility of jail time. In general, monetary fines as a deterrent are preferred to blacklisting of company directors, revoking business operation licenses, or calling for prison sentences. Do you agree with this preference? Should companies that are guilty of tax evasion face something more severe than a monetary fine? Something less severe? Should the fine and interest amount be set at a different rate? If so at why? Provide support and rationale for your responses.
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Text book image
Microeconomics
Economics
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Cengage Learning
Text book image
Economics:
Economics
ISBN:9781285859460
Author:BOYES, William
Publisher:Cengage Learning
Text book image
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Economics For Today
Economics
ISBN:9781337613040
Author:Tucker
Publisher:Cengage Learning
Text book image
Survey Of Economics
Economics
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Cengage,