Question

1. According to the Human Capital Model, holding other factors constant, people will be less likely to go to school when:
a) they come from richer families
b) they are more patient
c) they have talent in acting
d) they are more intelligent

2. According to the Human Capital Model, which of the following changes in circumstances will make people more likely to go to college:
a) college tuition decreases
b) the economy is in recession
c) there is more demand for highly educated workers in most industries
d) all of the above

3. If education serves purely as a signal of high productivity
a) the government should require more years of compulsory schooling
b) the government should require fewer years of compulsory schooling
c) the government should subsidize college tuition for college students
d) the government should provide more scholarship to smart people

4. Which of the following statement is predicted by the Human Capital model but not by the Signaling model:
a) people with higher productivity have more schooling
b) people with higher productivity receive higher wages
c) schooling leads to higher productivity
d) schooling leads to higher wages

Answer 1