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Mary Is an 18-Year-Old High School Graduate Who Can Take

Question 23

Multiple Choice

Mary is an 18-year-old high school graduate who can take a job paying $30,000 without further education. The prevailing interest rate is 10 percent.
-How do employers typically finance training?


A) By paying workers a wage which is lower than the value of the marginal product during the early stages of the employment relationship.
B) By paying workers a wage which is greater than the value of the marginal product during the later stages of the employment relationship.
C) By paying workers a wage which is greater than the value of the marginal product during the early stages of the employment relationship.
D) By paying workers a wage which is lower than the value of the marginal product during the later stages of the employment relationship.
E) By charging the new employee/trainees an upfront, out-of-pocket fee.

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