Principles of Microeconomics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165905
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 19, Problem 5PA
To determine
Signaling versus human capital.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Internships are considered a vital stepping stone to full-time employment after college, but not all internship positions are paid.
Suppose you have to decide between taking an unpaid summer internship in your field of study, or working at a factory for the summer
earning $10 an hour. If you take the factory job for the summer, what is included in your opportunity cost?
Choose one or more:
A. gaining valuable experience and increasing your human capital
B. networking with professionals in your field of study
C. the wages you make at the factory
7 OF 18 QUESTIONS COMPLETED
20
F4
See Hint
▶11
SUBMIT A
"Do Men and Women Earn the Same Amount?"
Please give a reason behind your answer.
What would be the impact of rational self-interest on your decision whether to attend college fulltime or enter full-time work force?
Chapter 19 Solutions
Principles of Microeconomics, 7th Edition (MindTap Course List)
Knowledge Booster
Similar questions
- What changes should be made in car crash testing to make cars safer for all occupants? Why do you think these changes haven’t been made yet? What other examples of male bias can you think of? How would you solve these problems? Would having more women in positions of leadership help solve these problems? Why or why not?arrow_forwardThere are many reasons why women earn less than men. One is attributed to the education and work environment women seek. Women often look for jobs that have normal hours, good working conditions, and safety. True or False?arrow_forwardDo you believe that education serves primarily to increase human capital, or to serve as a signaling mechanism? Why?arrow_forward
- Consider a situation where you felt wronged by someone you had a relationship with: a parent, friend, boss, or employee. Explain the situation. Have you forgiven the wrongdoer for harming you? If no, how does your inability or unwillingness to forgive the wrongdoer continue to damage you? What positive benefits would you receive if you did forgive the wrongdoer? If you have forgiven them, how has this past situation impacted your relationship?arrow_forwardtwo theories of education: human capital and signaling. Economists have estimated fairly large "sheepskin" effects, where wages increase significantly when someone earns a degree. Do you think these sheepskin effects are consistent with the human capital theory of education or signaling? Carefully explain. Do you think these theories could both hold some merit in the real world? Carefully explain.arrow_forwardIn addition to price increases and consumer demand, what is another economic factor that can affect career opportunities? Demographic trends Interest rates Foreign competition Changing uses of technology Geographic trends All of these choices are correct. Explain your answer and cite sources pleasearrow_forward
- How does the microeconomic theory of fertility relate to the theory of consumer choice? Do you think that economic incentives and disincentives influence family size decisions? Explain your answer, giving some specific examples of such incentives and disincentives.arrow_forwardSuppose that, on average, men earn $17 an hour and have an average of 15 years of schooling. Women earn $15 an hour and have an average of 14 years of schooling. If the estimated return to schooling for men is 0.30 (implying that each additional year of schooling translates into an additional 30 cents per hour) and the returns for schooling for women is 0.2, then the gender gap in schooling explains: 10% of the wage gap between men and women. 20% of the wage gap between men and women. 30% of the wage gap between men and women. 15% of the wage gap between men and women.arrow_forwardRefer to the News Wire to answer one question. NEWS WIRE: UNEQUAL WAGES Most Lucrative College Degrees College graduation does improve a person's income prospects. But all graduates aren't treated equally: What you majored in counts for a lot. Annual salary surveys by PayScale Incorporated confirm that a student majoring in engineering can expect to earn nearly twice the salary of a philosophy major. What Does Your Major Pay? Major Electrical Engineering Petroleum Engineering. Chemical Engineering Computer Science Nursing Math Economics Astronomy Finance Political Science Philosophy Nutrition English Education Theatre Social Work Median Starting Salary $ 101,200 92,300 74,500 70,700 61,700 59,600 58,200 54,800 53,400 52,200 48,700 45,000 43,600 41,800 39,700 36,600 Source: "College Salary Report, PayScale, 2020, www.payscale.com. Assuming that a college graduate on average earns her MRP, what is the MRP for a newly hired Economics major in 2020? Instructions: Enter your response as a…arrow_forward
- How does a human capital investment in education increase your lifetime earning?arrow_forwardDoes maximizing the value of the firm come at the cost of the CSR program? When forming your thoughts for part two, consider Apple and Microsoft. Apple is a company that does not have a rigorous CSR program. Instead, they focus on maximizing the most profits possible. On the other hand, Microsoft and Bill Gates is one of the most “giving” companies in the business world today. Which scenario is better for society and the organization?arrow_forwardDebbie is about to choose a career path. She has narrowed her options to two alternatives. She can become either a marine biologist or a concert pianist. Debbie lives two periods. In the first, she gets an education. In the second, she works in the labor market. If Debbie becomes a marine biologist, she will spend $15,000 on education in the first period and earn $472,000 in the second period. If she becomes a concert pianist, she will spend $40,000 on education in the first period and then earn $500,000 in the second period.a. Suppose Debbie can lend and borrow money at a 5 percent rate of interest between the two periods. Which career will she pursue? What if she can lend and borrow money at a 15 percent rate of interest? Will she choose a different option? Why?b. Suppose musical conservatories raise their tuition so that it now costs Debbie $60,000 to become a concert pianist. What career will Debbie pursue if the interest rate is 5 percent?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning