Q1in signaling model assume high school graduates are paid

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Q1.in signaling model, assume high school graduates are paid a stream of income whose present value is $200,000. College graduates are paid a stream of income whose present value is X. College education costs higher-productivity workers $50,000 and lower-productivity workers $150,000. What value of X will cause higher-productivity workers to go to college and lower-productivity workers to not go to college?

Q2. How can a business owner who earns $10 million/year from his or her business credibly claim to earn zero economic profit?

Q3. When and where did modern economic growth first happen? What are the major institutional factors that form the foundation for modern economic growth? What do they have in common?

Reference no: EM13352297

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