Which Theory Does the Best Job of Explaining Why Educated

question 29

Multiple Choice

Which theory does the best job of explaining why educated people are paid more than uneducated people

• A)the human-capital and price-fixing theories
• B)the human-capital and signalling theories
• C)the wage-differential and common-demand theories
• D)the cost-allocation and derived-demand theories

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Definitions:

Transfer Pricing

The pricing of goods, services and intangibles between associated enterprises that are under common ownership or control.

Selling Division

A segment or branch of a company responsible for marketing and selling its products or services.

Full Cost

The total cost of production that includes both direct costs, like raw materials and labor, and indirect costs, like overhead.

Margin And Turnover

Financial metrics where margin refers to the difference between sales and the cost of goods sold, and turnover involves the rate at which inventory is sold or replaced.