Which theory is supportive of the idea that increasing educational levels for all workers would raise all workers' productivity and therefore their wages?

A) The theory of compensating differentials
B) The efficient-market hypothesis
C) Human-capital theory
D) Signaling theory

Question

Barbara Ortiz · Accepted Answer

Final Answer : C, Explanation :  Human-capital theory posits that investments in education and training increase the productivity of workers, which in turn should lead to higher wages. This theory supports the idea that raising educational levels for all workers would enhance their productivity and thus their wages.

Which theory is supportive of the idea that increasing educational levels for all workers would raise all workers' productivity and therefore their wages?

A) The theory of compensating differentials
B) The efficient-market hypothesis
C) Human-capital theory
D) Signaling theory

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Learning Objectives

Learning Objectives

Related questions

Which theory is supportive of the idea that increasing educational levels for all workers would raise all workers' productivity and therefore their wages?A) The theory of compensating differentialsB) The efficient-market hypothesisC) Human-capital theoryD) Signaling theory

Definitions

Learning Objectives

Learning Objectives

Related questions

Which theory is supportive of the idea that increasing educational levels for all workers would raise all workers' productivity and therefore their wages?

A) The theory of compensating differentials
B) The efficient-market hypothesis
C) Human-capital theory
D) Signaling theory