When employers sort employment applications into high-ability and low-ability people based on whether or not the applicant has a college degree (irrespective of major), they are providing evidence in support of the
a. human-capital theory of education.
b. signaling theory of education.
c. principle that education reduces marginal productivity.
d. principle that most business owners are more interested in discriminating against a particular group than in maximizing profits.
b
You might also like to view...
Refer to the table below. Based on their comparative advantage, Martha should specialize in ________ while Julia should specialize in ________. Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. cakes; pies B. neither pies nor cakes; both pies and cakes C. pies; cakes D. both pies and cakes; neither pies nor cakes
If the exchange rate changes from 1.5 euros per dollar to 1.0 euro per dollar, the euro has
A) depreciated against the dollar. B) appreciated against the dollar. C) fallen inversely in value. D) depreciated against the euro. E) appreciated against the euro.
Making optimal decisions "at the margin" requires
A) making consistently irrational decisions. B) weighing the costs and benefits of a decision before deciding if it should be pursued. C) making decisions according to one's whims and fancies. D) making borderline decisions.
If a U.S. citizen deposits $10,000 in a foreign bank, and the bank uses the $10,000 to buy assets in the U.S., then ________
A) the U.S. has experienced a net capital outflow B) the U.S. has experienced an increase in net exports C) the foreign economy has experienced a net capital outflow D) the foreign economy has experienced an increase in net exports E) none of the above