ECON 2A03 Lecture Notes - Lecture 21: Time Preference, Stopping Time, Forklift
9 Nov 2017
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Present value calculations allow one to determine a. b. c. d. e. The present-day costs and/or benefits of various options. What is an example of general job training? a. b. c. d. Reading a book on techniques for managing large groups of workers involved on team projects. The skills gained from the general trainin are transferable to other firms. End one"s schooling when the rate of return to one more year of schooling equals the worker"s rate of discount. The unique set of abilities and skills embedded in workers. Because there is more time to benefit from the higher wages that are typically associated with more education. Paula"s time preference for money is associated iwht a per-perdod interst rate of 20%. Human capital has a low rate of return. In order to use schooling as a signal. The signal must be more costly for low-skilled workers than for high-skilled workers.
