Daniel Hammermesh and Stephen Donald Studied the Determinants of the Earnings

question 141

Multiple Choice

Daniel Hammermesh and Stephen Donald studied the determinants of the earnings of college graduates years after they graduated.Which of the following is one result of their study?

• A)The earnings of identical twins were about 9 percent higher than the earnings of all other students.
• B)Students who had taken 15 credits of upper-division science and mathematics courses and earned high grades in these courses earned about 10 percent more than students who took no upper-division classes in these subjects.
• C)Students who took more Advanced Placement (AP)courses while still in high school earned significantly more income for each AP course they passed with a grade of 4 or 5.
• D)Students who took at least three economics courses earned about 9 percent more income than students who took no college economics courses.

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Definitions:

LIFO Inventory Method

An accounting method that assumes the last items of inventory purchased are the first to be used or sold, affecting the cost of goods sold and inventory valuation.

FIFO Inventory Method

An accounting method for valuing inventory that assumes the first items purchased are the first ones sold.

Ending Inventory

The total value of all inventory that a company has in stock at the end of an accounting period.

Decreasing Unit Costs

A situation in which costs per unit of output fall as the volume of production increases, often due to economies of scale.