Which of the Following Statements About Education and Wage Rates

question 48

Multiple Choice

Which of the following statements about education and wage rates is true?

• A) People with four-year college degrees tend to earn considerably more than those with advanced degrees.
• B) Inflation-adjusted earnings for people with four-year college degrees have fallen over the last 30 years.
• C) People who are high school graduates with no college education have seen virtually no increase in inflation-adjusted earnings in the last 30 years.
• D) While people with high school degrees have had almost no increase in real wages in 30 years, those with college or advanced degrees have had significant increases in pay.

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Definitions:

Journal Entry

A record in the books of accounts that documents a business transaction in terms of debits and credits.

Adjusting Entries

Fiscal period closing entries in accounts to properly assign incomes and expenditures to the interval in which they factually took place.

Prepaid Insurance

An asset account that represents insurance premiums paid in advance, covering future periods.

Depreciation

Depreciation is the accounting process of allocating the cost of a tangible asset over its useful life, recognizing it as an expense.