Question

According to human capital theory, a doctor is paid more than a elementary school teacher because a) the doctor's services are more socially useful than those of the educator. b) the opportunity cost of receiving training as a doctor is higher. c) in a capitalist economy, doctors are treated as inputs, not valued as real human beings. d) the opportunity cost of leisure is higher for teachers. The theory that paying higher wages can raise productivity is known as a) Human capital theory Soloses b) Monopsony theory c) Efficiency wage theory d) The marginal product theory of distribution The idea that substituting capital requires bearing an opportunity cost now in order to realize future gains is known as the theory of a) Human capital b) Roundabout production c) Marginal productivity d) Loanable funds markets The idea that than the same

Answer 1

14)

Answer: B

Opportunity cost of getting degree of doctor is relatively very high. Hence doctors are highly paid.

15)

Answer: c

Efficiency wage is paid to motivate workers to increase their productivity.

16)

Answer: (b)

Roundabout productions means investing in capital goods and then using these goods for further production of other goods.