What Is Implied When the Wage-Schooling Profile Is Drawn as a Concave

question 26

Multiple Choice

What is implied when the wage-schooling profile is drawn as a concave (i.e., increasing at a decreasing rate) function?

• A) The marginal return to schooling increases as years of schooling increases.
• B) The marginal return to schooling is positive but falling as years of schooling increases.
• C) Average wages fall as years of schooling increases.
• D) The cost of schooling increases but at a decreasing rate.
• E) The cost of schooling decreases but at an increasing rate.

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