This diagram shows the age-earnings profiles of three different individuals who opt to choose three options: not graduating from high school, graduating from high school, and graduating from a university. Earnings Income stream Income stream B Income stream a c 16 18 22 Age The area labeled e) refers to: The explicit, out-of-pocket costs incurred The opportunity costs incurred by someone who opted for income stream B (a high school graduate) The earnings premium earned by someone who opted for income stream B (a high school graduate) relative to a worker who did not obtain a high school diploma. The earnings premium earned by someone who opted for income stream C (a university graduate) relative to a worker who graduated from high school.

This diagram shows the age-earnings profiles of three different individuals who opt to choose three options: not graduating from high school, graduating from high school, and graduating from a university. Earnings Income stream Income stream B Income stream a c 16 18 22 Age The area labeled e) refers to: The explicit, out-of-pocket costs incurred The opportunity costs incurred by someone who opted for income stream B (a high school graduate) The earnings premium earned by someone who opted for income stream B (a high school graduate) relative to a worker who did not obtain a high school diploma. The earnings premium earned by someone who opted for income stream C (a university graduate) relative to a worker who graduated from high school.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.8P

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fmagine that somecne offered you a choice, You couldspend four years studying at the world 's best uni•versity, but you would have to keep your attendancethere a secret Or you could be awarded an official degree from the world's best university, but you couldn'.tactually attend. Which choice do you think wouldenhance your future earnings more? What does youranswer say about the debate over signaling versus human capital in the role of education?
Suppose Carl’s wage-schooling locus is given byYears of Schooling Earnings 9 $18,500 10 $20,350 11 $22,000 12 $23,100 13 $23,900 14 $24,000Derive the marginal rate of return schedule. When will Carl quit school if his discount rate is 4 percent? What if the discount rate is 12 percent?
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Otherthingsbeingconstant,howwillthefollowinginfluence the hourly earnings of employees? Explain your answer. The employee must work the midnight to 8:00 a.m. shift. The job involves split shifts (work three hours, off two hours, work three additional hours, and so on). Theemployerprovideslow-costchildcareservicesonthe premises. The job is widely viewed as prestigious. The job requires employees to move often from city to city. The job requires substantial amounts of out-of-town travel.
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The following figure shows the relationship between employment and monthly salary in the periods 1968 to 1984. Copytight o Moraw Educaton. Permsson required for reproduction or dispiay. Employment Monthly Salary ($) 250,000 4,500 230,000 4,000 210,000 190,000 3,500 170,000 150,000 3,000 130,000 2,500 110,000 Wage 90,000 2,000 70,000 Employment 50,000 1,500 1968 1970 1972 1974 1976 1978 1980 1982 1984 Using the labour supply - labour demand model, how can you rationalize the comovement between employment and wage in the period 1968-1976 The labour demand curve shifts to the left There is no way to rationalize the data The labour demand curve shifts to the right The labour supply curve shifts to the right The labour supply curve shifts to the left
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