Example of human capital.
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.
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?
Chapter 19 Solutions
Principles Of Economics, Ap Edition, 9781337292603, 1337292605, 2018
- not use ai pleasearrow_forwardUse the following table to work Problems 5 to 9. Minnie's Mineral Springs, a single-price monopoly, faces the market demand schedule: Price Quantity demanded (dollars per bottle) 10 8 (bottles per hour) 0 1 6 2 4 3 2 4 0 5 5. a. Calculate Minnie's total revenue schedule. b. Calculate its marginal revenue schedule. 6. a. Draw a graph of the market demand curve and Minnie's marginal revenue curve. b. Why is Minnie's marginal revenue less than the price? 7. a. At what price is Minnie's total revenue maxi- mized? b. Over what range of prices is the demand for water from Minnie's Mineral Springs elastic? 8. Why will Minnie not produce a quantity at which the market demand for water is inelastic?arrow_forwardDon't give AI generated solution otherwise I will give you downward Give correct answer with explanationarrow_forward
- The Firm's Output Decision (Study Plan 12.2) Use the following table to work Problems 4 to 6. Pat's Pizza Kitchen is a price taker. Its costs are Output (pizzas per hour) Total cost (dollars per hour) 0 10 1 21 2 30 3 41 4 54 5 69 4. Calculate Pat's profit-maximizing output and economic profit if the market price is (i) $14 a pizza. (ii) $12 a pizza. (iii) $10 a pizza. 5. What is Pat's shutdown point and what is Pat's economic profit if it shuts down temporarily? 6. Derive Pat's supply curve.arrow_forwardUse the following table to work Problems 27 and 28. ProPainters hires students at $250 a week to paint houses. It leases equipment at $500 a week. The table sets out its total product schedule. Labor (students) 1 Output (houses painted per week) 2 23 5 3 9 4 12 5 14 6 15 27. If ProPainters paints 12 houses a week, calculate its total cost, average total cost, and marginal cost. At what output is average total cost a minimum? 28. Explain why the gap between ProPainters' total cost and total variable cost is the same no matter how many houses are painted.arrow_forwardUse the following table to work Problems 17 to 20. The table shows the production function of Jackie's Canoe Rides. Labor Output (rides per day) (workers per day) Plant 1 Plant 2 Plant 3 Plant 4 10 20 40 55 65 20 40 60 75 85 30 65 75 90 100 40 75 85 100 110 Canoes 10 20 30 40 Jackie's pays $100 a day for each canoe it rents and $50 a day for each canoe operator it hires. 19. a. On Jackie's LRAC curve, what is the average cost of producing 40, 75, and 85 rides a week? b. What is Jackie's minimum efficient scale?arrow_forward
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
