In order to use schooling as a signal,
A. firms must be able to easily verify each worker's amount of schooling.
B. some people must choose to not complete schooling.
C. the signal must be costlier for low-skilled workers than for high-skilled workers.
D. the cost of purchasing the signal must not be so costly that high-skilled workers do not value obtaining it.
E. All of these are required for schooling to serve as a signal.
Answer: E
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Which of the following is true of protectionism?
A) It lowers prices for domestic consumers and increases social surplus. B) It increases prices for domestic consumers and also increases social surplus. C) It increases prices for domestic consumers and lowers social surplus. D) It lowers prices for domestic consumers and also reduces social surplus.
What is the expected payoff of an investment that yields $5,000 with a probability of 0.15 and $500 with a probability of 0.85?
A. $325 B. $5,500 C. $1,175 D. $2,750
An example of a non-discretionary fiscal policy is:
a. Legislation passed to improve U.S. roads and bridges. b. Increased U.S. defense spending after the September 11, 2001 terrorist attacks. c. Fixed income tax rates. d. All of the above. e. None of the above.
Based on the redistributive income effects, who "gains" when there is inflation?
What will be an ideal response?