QUESTIONS FOR REVIEW
1. Why do coal terrines get paid more than other workers with similar amounts of education?
2. In what sense is education a type of capital?
3. How might education raise a worker’s wage without raising the worker’s productivity?
4. What conditions lead to economic superstars? Would you expect to see superstars in dentistry? In music? Explain.
5. Give three reasons a worker’s wage might be above the level that balances supply and demand.
6. What difficulties arise in deciding whether a group of workers has a lower wage because of discrimination?
7. Do the forces of economic competition tend to exacerbate or ameliorate discrimination on the basis of race?
8. Give an example of how discrimination might persist in a competitive market.
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