Question 14

The essence of human capital theory is that:

A. Investments are made in human resources so as to improve their productivity and, therefore, their earnings.

B. Workers invested in higher education in order to send a signal to potential employers regarding their underlying ability.

C. Firms spend money on their capital stock and equipment in order for labour to become more productive.

D. All workers who want to increase their salary should obtain a university diploma.

Question 15

When some non-union employers raise wages to reduce the possibility that their employees will choose to become unionized, it is called:

A. The efficiency wage effect.

B. The anti-organization effect.

C. The displacement effect.

D. The queuing effect.

E. The threat effect.

Question 17

In the context of compensating wage differentials, an isoprofit schedule is defined as:

Select one:

A. The various combinations of wages and safety that the firm can provide and maintain the same level of costs.

The various combinations of wages and safety that the firm can provide and maintain the same level of utility for the labour force.

C. The various combinations of safety initiatives and wages that the firm can provide and still earn profit.

D. The variation between profit and loss margins that a firm earns as a function of changing wage and job safety levels.

E. The various combinations of wages and safety that the firm can provide and maintain the same level of profits.