Which of the Following Is Not an Explanation for Why

question 96

Multiple Choice

Which of the following is not an explanation for why better educated workers earn more, on average, than less educated workers?

• A)The higher wages may be a compensating differential for the cost of acquiring the education.
• B)Workers with a college degree signal their higher abilities to potential employers.
• C)Skilled labor is increasingly becoming a substitute for unskilled labor, which raises the earnings of workers with more education.
• D)Better educated workers are more productive, on average.

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Definitions:

Trained Staff

Employees who have received specific education, instruction, and practice to improve their skills and competencies for their job roles.

Controlled

In a business context, it refers to the ability to direct the management and policies of a company through ownership, contract, or influence.

Recognition Criteria

The specific conditions that must be met for a particular element (asset, liability, income, or expense) to be recognized on the financial statements.

Financial Statements

Formal records of the financial activities and position of a business, institution, or individual, typically comprising the balance sheet, income statement, and cash flow statement.