One Theory That Predicts Sustained Wage and Rent Differentials Is

question 7

Multiple Choice

One theory that predicts sustained wage and rent differentials is based on the idea that your accumulation of human capital raises the productivity of the other workers and the physical capital in your locale.In this situation,human capital accumulation creates

• A) a signaling equilibrium.
• B) external benefits.
• C) compensating differentials.
• D) intertemporal substitutions.