If a College Education Did Not Increase Worker Productivity

question 100

Multiple Choice

If a college education did not increase worker productivity,

• A) no one would go to college.
• B) wages would tend to be the same for workers with and without a college education.
• C) wages would still be higher for workers with college degrees because of the cost of going to college.
• D) the total lifetime earnings of workers who go to college and those who do not would tend to be the same.

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Definitions:

Output

The total amount of goods or services produced by a person, machine, or industry during a given period.

Price Taking Firm

A company that must accept the market price for its product, as it has no power to influence the price due to intense competition or market conditions.

Maximum Profit

The highest possible financial gain an entity can achieve in a given period, usually by optimizing sales and minimizing costs.

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products, and no barriers to entry or exit.