One Reason That College Graduates Earn Higher Wages Than Non-Graduates

question 81

Multiple Choice

One reason that college graduates earn higher wages than non-graduates is because

• A) college graduation serves as a signal of the individual's productivity.
• B) there are no additional skills learned in college that increase productivity.
• C) college graduates are always less intelligent than non-college graduates.
• D) college graduates are less equipped to deal with technological change, as their skills are technology-specific.

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Definitions:

Ceteris Paribus

A Latin phrase meaning 'all other things being equal', used in economics to isolate the effect of one variable change.

Payroll Taxes

Levies placed on both employers and employees, determined by a portion of the wages that businesses disburse to their workforce.

High-Income Earners

Individuals or households that have an income significantly above the average or median level.

Low-Income Earners

Individuals or households that earn less than the median income level, often qualifying them for certain government assistance programs.