Which Theory Would Support the Idea That Education Does NOT

question 42

Multiple Choice

Which theory would support the idea that education does NOT enhance productivity and that raising all workers' educational levels would NOT affect wages

• A)signalling theory
• B)human-capital theory
• C)physical-capital theory
• D)efficient-market hypothesis

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Definitions:

Compensating Variation

A monetary measure of the amount of money a consumer would need to reach their original utility level after a price change.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Utility Function

A mathematical expression that describes how the total satisfaction or happiness of a consumer changes with changes in consumption of goods and services.

Demand Function

A mathematical equation that describes the relationship between the quantity demanded of a good and its various determinants like price, income, and prices of related goods.