Chapter 19 Questions for Review answers1.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
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