The Economics of Language: Checkpoint 1

Quick checkpoint - five questions on human capital, the English premium, trade, linguistic states and Hindi debates.

Question 1 of 5 Why are widely used languages more valuable to learn?

Network effects They're easier They're newer Government rules

A language grows more useful as more people use it.

Question 2 of 5 What is the English wage premium?

Higher wages linked to English fluency A tax on English A school fee A bonus for teachers

One study found about 34% for fluent men.

Question 3 of 5 How does a shared language affect trade?

It raises trade by lowering costs It cuts trade It has no effect It bans trade

Gravity models include language.

Question 4 of 5 Which Act reorganised states by language in 1956?

States Reorganisation Act Official Languages Act RTI Act Companies Act

Andhra State came first in 1953.

Question 5 of 5 Which state follows a two-language policy?

Tamil Nadu Punjab Bihar Goa

It uses Tamil and English.

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