WorksheetsExploring Comparative Economic Theories
Total questions: 9
Worksheet time: 8mins
Human Capital Theory (HCT) and Screening Theory help explain:
How you can make the most money with your degree.
How education affects productivity in the labor market.
How societies decide who their "best people" are.
How Capitalism works.
Human Capital Theory emerged from ________ while Screening Theory emerged from ________.
Free Trade Theory; Laissez-faire Theory
Institutional Economics; Neoclassical Theory
Neoclassical Theory; Institutional Economics
Capitalism; Communism
What is "Human Capital"?
The sum total of an individual's knowledge and skills.
The amount of money a person makes.
The number of financial assets a person owns.
The difference between money spent on college vs. a person's salary.
Screening Theory says that education serves to signal an employee's high productivity/ability.
True
False
Kentucky requiring certification (and a bachelor's degree) to teach is an example of:
Human Capital Theory
Neoclassical Theory
A perfect market
Screening Theory
Which theory believes that education, training, and development add value to individuals?
HCT
Screening Theory
Both HCT and Screening Theory
Neither HCT nor Screening Theory
Who would say "the opportunity cost of attending college is worth the future earning potential"?
Joseph Stiglitz
A Screening Theorist
An Institutional Economist
A Human Capital Theorist
HCT says that it is rational to give college graduates higher salaries because they are more productive.
True
False
Screening Theory could make the hiring process for employers easier because:
Employers can narrow down a field of candidates to only those with a degree.
Applicants have to answer certain questions to be considered.
Employers only hire economists.
Employers hand pick applicants from college campuses.
