According to the Becker/Rosen human capital model of educational choice, workers invest in education until:          Group of answer choicesThe marginal utility from education is equal to zero.The marginal rate of return from education is equal to their discount rate.The percent increase in lifetime earnings from one more year of education is 0.The marginal rate of return from education becomes negativeThe marginal utility from education equals to the cost of education.

The general human capital model predicts that schooling increasesGroup of answer choicesas both ability and the discount rate decrease.as both ability and the discount rates increase.as ability decreases but as the discount rate increases.as ability increases but as the discount rate decreases.when ability is held constant and the discount rate increases.

Education is a uniquely safe investment, because it does not depreciate.Group of answer choicesTrueFalse

Consider an economy with the production function  with A=10, K=100, and N=400, Suppose labour participation rates decline as a greater proportion of the population attends University full time before entering the job market so that N declines to N=380. In this case, Group of answer choicesBoth the Marginal Product of Labour and the Marginal Product of Capital increase.Both the Marginal Product of Labour and the Marginal Product of Capital decrease.The Marginal Product of Labour increases while the Marginal Product of Capital decreases.The Marginal Product of Labour declines while the Marginal Product of Capital increases.

The slope of the wage-schooling locus provides an estimate of theGroup of answer choiceseconomic return to an additional year of schooling.marginal cost of an additional year of schooling.average years of education as a function of age.economic cost of an additional year of schooling.average wage or salary of workers for a given level of schooling.

Marginal utility is:Multiple Choicediminishing.constant.increasing.unpredictable.