Jake and Bill Are Both College Graduates

question 260

Multiple Choice

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

• A) of a compensating differential.
• B) of efficiency wages.
• C) of education as a signal.
• D) Bill has more human capital.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset since it was put into service.

Straight-line Method

An accounting method for calculating depreciation by evenly distributing the cost of an asset over its useful life.

Residual Value

The estimated remaining value of an asset at the end of its useful life.

Salvage Value

The anticipated end-of-life value of an asset once it has finished its useful period.