Which of the following statements represents the idea behind signaling in education?
a. Education can turn an unproductive person into a productive person.
b. Education increases the marginal productivity of naturally productive workers.
c. More productive people are more inclined to educate themselves.
d. All of the above are correct.
c
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The managerial technique of markup pricing is consistent with the economic theory of profit maximization when the markup is positively related to the price elasticity of demand
Indicate whether the statement is true or false
In the 1850s, the growth rate of real wages in U.S. manufacturing slowed to nearly zero because
a. the demand for manufacturing labor and the supply of manufacturing labor increased by approximately the same amount during this period. b. the demand for manufacturing labor and the supply of manufacturing labor decreased by approximately the same amount during this period. c. the demand for manufacturing labor increased more rapidly than the supply of manufacturing labor during this period. d. the demand for manufacturing labor increased while the supply of manufacturing labor decreased during this period.
The idea that people will substitute cheaper commodities for more expensive commodities is called
A) the marginal effect. B) the real-income effect. C) the substitution effect. D) the utility effect.
If a firm shuts down, it
A) will suffer a loss equal to its fixed costs. B) will produce nothing but must pay its variable costs. C) will produce nothing but must pay its fixed and variable costs. D) will earn enough revenue to cover its variable costs but not all of its fixed costs.