According to Human Capital Theory, Which of the Following Is

question 61

Multiple Choice

According to human capital theory, which of the following is not a reason college graduates earn more than those with only a high school degree?

• A)College graduates insist on a financial return on their human investments.
• B)College graduates are made more productive by their greater training.
• C)Jobs that require more education must pay higher wages to attract enough workers.
• D)Income effects are higher for jobs requiring more education.

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Definitions:

Equity Account

An account representing the owner's or shareholders' residual interest in the assets of the entity after deducting liabilities.

Stockholders

Stockholders are individuals or entities that own shares of stock in a corporation, thereby holding ownership interests and potentially benefiting from the company's profitability through dividends and stock price appreciation.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often providing dividends before common shares.

Stockholders' Equity

The ownership interest of shareholders in a company, calculated as total assets minus total liabilities.