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.

Consider the following DGP:earnings = 10 + 10 ∗ schooling + 1 ∗ exper,whereearnings  is hourly earnings in NZDschooling is years of completed schoolingexper is years of work experience.According to this DGP, completing one more year of schooling will have the following effect on earnings:

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.

If wages and other costs fully adjust to changes in prices in the long run, the long-run aggregate supply curve isGroup of answer choicesvertical.horizontal.positively sloped.negatively sloped.

From the 1970s through the 1990s, the relative price of a university education has increased greatly. During the same time period, university enrollment has also increased. This evidence suggests that during this time period most likelyGroup of answer choicesthe demand curve for a university education has shifted leftward.the demand curve for a university education has shifted rightward.the supply curve for a university education has shifted leftward.the supply curve for a university education has shifted rightward.

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.