The Asian Development Bank Has Been Investing in Education and Training

question 197

Multiple Choice

The Asian Development Bank has been investing in education and training programs in the developing economies of Asia over the last five years. As a result of this investment, economists who adhere to the human capital view of education would predict

• A)rising wages as labor productivity is enhanced.
• B)falling wages as the labor market is saturated with too many educated workers.
• C)the marginal productivity of capital would not be affected.
• D)the marginal productivity of labor would not be affected.

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Definitions:

Corporate Tax Rate

The proportion of a company's earnings allocated to the state in the form of taxes.

Personal Income

The total amount of income earned by an individual from all sources, including employment, investments, and other forms of earnings.

Pre-tax Earnings

The amount of income earned before taxes have been deducted.

Bond Issue

The process by which a corporation or government raises funds by selling bonds to investors.