Of the Theories Listed Below, Which Do the Best Job

question 28

Multiple Choice

Of the theories listed below, which do the best job of explaining why educated people are paid more than uneducated people?

• A)human-capital and price-fixing
• B)human-capital and signaling
• C)wage-differential and signaling
• D)wage-differential and compensating-differentials

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Definitions:

Complement

A system of proteins in the blood serum and plasma that enhances the ability of antibodies and phagocytic cells to clear pathogens from an organism.

Bacteria

Single-celled microorganisms that come in various forms and can inhabit a wide range of environments, including the human body.

Inflammatory Response

Tissue response to injury that is characterized by redness, swelling, pain, and heat.

Inflammation

The body’s immune response to infection or injury, characterized by redness, heat, swelling, and pain.