Which of the Following Theories Would Suggest That Attending School

question 22

Multiple Choice

Which of the following theories would suggest that attending school does not improve productivity but that high-ability people are more likely to stay in school?

• A)physical-capital theory
• B)human-capital theory
• C)signaling theory
• D)neoclassical theory

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Definitions:

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders, often reinvested in the business or kept as a reserve.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor costs, but excluding indirect expenses.

Expense

An outflow of cash or other valuable assets from a person or company to another entity in exchange for goods or services.

Expenses

Costs incurred during business operations to generate revenue, which may include rent, salaries, and materials.