Which of the Following Has Not Been Identified by Research

question 22

Multiple Choice

Which of the following has not been identified by research that tries to address the self-selection issue regarding the returns to schooling?

• A) When both a high school graduate and a college graduate are placed in the type of job that high school graduates typically fill, the high school graduate would be more productive.
• B) When both a high school graduate and a college graduate are placed in the type of job that college graduates typically fill, the college graduate would be more productive.
• C) There are many kinds of ability that are rewarded in the workplace.
• D) In general, workers appear to choose schooling amounts that maximize lifetime income.
• E) All of the above have been identified by the research on the returns to schooling.

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Definitions:

Zero Inflation

A situation where the price level of goods and services remains constant over time, indicating no inflation in an economy.

Labor Market

The marketplace in which laborers offer their skills and labor to employers in exchange for wages.

Real Interest Rates

The rate of interest an investor, saver or lender receives (or expects to receive) after allowing for inflation.

Federal Open Market Committee

The branch of the Federal Reserve System that is responsible for determining the direction of monetary policy, specifically by directing open market operations.