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:

Put Option

A financial contract giving the option holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Fair Value Hedge

A hedge that protects against changes in the fair value of assets, liabilities, or firm commitments through the use of a derivative.

British Pounds

The currency of the United Kingdom, also known as GBP, which is one of the world's major currencies.

Foreign Exchange Gain

A profit resulting from changes in exchange rates affecting the value of investments or transactions in foreign currencies.