Dan and Dave Are Both College Graduates

question 71

Multiple Choice

Dan and Dave are both college graduates. Dan is a patrolman and Dave is a detective in the same police precinct. While Dan's job is inherently more dangerous than Dave's, Dave passed a difficult exam to gain promotion to detective. Dave earns more than Dan because

• A)Dave's job is less dangerous.
• B)of efficiency wages.
• C)of education as a signal.
• D)Dave has more human capital.

---

Definitions:

Protectionist Actions

Actions taken by a country to protect domestic industry

Trade Surplus

The result when a country engaged in trade exports more than it imports, also called positive trade balance.

International Product Life Cycle

A theory suggesting that a product's sales and popularity will vary in different international markets through various stages of its life cycle.

Maturity Phase

The stage in a product's lifecycle or a company's growth where sales growth slows or stabilizes as the market becomes saturated.