Which of the Following Is Not an Explanation for Why

question 96

Multiple Choice

Which of the following is not an explanation for why better educated workers earn more, on average, than less educated workers?

• A)The higher wages may be a compensating differential for the cost of acquiring the education.
• B)Workers with a college degree signal their higher abilities to potential employers.
• C)Skilled labor is increasingly becoming a substitute for unskilled labor, which raises the earnings of workers with more education.
• D)Better educated workers are more productive, on average.

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Definitions:

Units

This term refers to a measure of quantity, such as items or products, used in manufacturing and production.

Selling Expenses

Costs associated with the distribution, marketing, and sale of a product or service.

Administrative Expenses

Costs related to the general operation of a company, including expenses such as salaries of executive officers and costs of general services.

Variable

An element or factor that can change or vary, affecting the outcome of mathematical models, experiments, or financial projections.