A Model Is Based on an Assumption That an Additional

question 25

Multiple Choice

A model is based on an assumption that an additional year of education increases a student's future wage by 20 percent.
-Refer to the scenario above.Which of the following statements is true of the model?

• A) The predictions of this model cannot be tested with data.
• B) The predictions of this model are accurate and will hold for all individuals.
• C) The predictions of this model can be applied to unlimited years of additional education.
• D) The model predicts that two additional years of education is likely to increase future earnings by 60 percent.

---

Definitions:

Older Workers

Individuals in the workforce who are past the typical age of retirement, offering valuable experience and skills.

Individual Abilities

The skills and competencies unique to each person that influence their capacity to perform tasks.

Contingent Workers

Individuals employed on a non-permanent basis, such as freelancers, contractors, or temp agency workers, often used by companies to adjust more flexibly to workload fluctuations.

Implicit Contract

An unwritten and unspoken agreement between parties, often based on assumed understanding or expectations.