{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 19 Questions for Review answers

Chapter 19 Questions for Review answers - 1...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 19 Questions for Review answers 1. Coal miners are paid more than other workers with similar amounts of education  because their higher wage compensates them for the dirty and dangerous nature of  coal mining, as well as their long-term health problems. As a result, they earn a  sizable compensating differential. 2. Education is a type of capital because it represents an expenditure of resources at  one point in time to raise productivity in the future. 3. Education might raise a worker's wage without raising the worker's productivity if  education works as a signal that the worker has high ability. 4. The conditions that lead to economic superstars are: (1) every customer wants to  enjoy the good supplied by the best producer; and (2) the good is produced with a  technology that makes it possible for the best producer to supply every customer at a  low cost. Because one dentist could not supply every customer, you would not expect 
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '09
  • producer, best producer, long­term health problems., blonde waiters, unregulated labor market

{[ snackBarMessage ]}

Ask a homework question - tutors are online