Which of the Following Statements Is True

question 105

Multiple Choice

Which of the following statements is true?

• A) A worker who undertakes general training is likely to earn above her value of the marginal product.
• B) Firm-specific training results in gains to a worker and not to an employer in the labor market.
• C) Job-specific training results in gains to a worker's employer, but it does not result in gains to the worker in the labor market.
• D) Training received by a worker does not affect his wages, because wage rates are determined by the forces of demand and supply in the labor market.

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Definitions:

Expansionary Policy

is a macroeconomic policy that aims to increase economic growth or reduce unemployment by increasing government spending, decreasing taxes, or both.

Excess Reserves

The amount of reserves held by a bank that exceeds the minimum reserve requirements set by the central bank.

Ability

Ability refers to the capacity or power of an individual or entity to do something effectively, often implying a skill or competence in a specific domain.

Currency

A system of money in general use in a specific country or region.