Of the Theories Listed Below,which Do the Best Job of Explaining

question 169

Multiple Choice

Of the theories listed below,which do the best job of explaining why educated people are paid more than uneducated people?

• A) human-capital and price-fixing
• B) human-capital and signaling
• C) wage-differential and derived-demand
• D) cost-allocation and compensating differentials

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Definitions:

Earnings Per Share

A measure of a company's profitability that calculates how much of the net income is available per share of stock.

Year 2

Refers to the second year of a particular time frame, often used in financial analysis to denote the second year of operations, investments, or accounting periods.

Price-Earnings Ratio

A valuation metric comparing the current share price of a company to its per-share earnings.

Year 2

A reference to the second year in a time series analysis or the second year of a company's operations or financial reporting.