What Is a Likely Explanation as to Why Workers Who

question 22

Multiple Choice

What is a likely explanation as to why workers who have been on the job for a long time earn more than newly hired workers?

• A)Because workers in bad job matches tend to stay on the job longer.
• B)Because workers in long-lasting job matches accumulate specific training over time, which increases the workers' productivity.
• C)Because the positive effects of general training on education erode over time.
• D)Young workers are more productive than older workers.
• E)U.S. law requires older workers to be paid more than younger workers.

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Definitions:

Operating Costs

Expenses related to the day-to-day functions of a business, excluding direct materials and direct labor costs.

Donut Maker

A kitchen appliance or tool specifically designed for making donuts.

Simple Rate of Return

A calculation that measures the profitability of an investment as a percentage of the original investment, ignoring the time value of money and other factors like cash flows over time.

Annual Donut Sales

The total revenue generated from selling donuts in a one-year period.