In Order to Use Schooling as a Signal

question 11

Multiple Choice

In order to use schooling as a signal,

• A) the signal must be costlier for low-skilled workers than for high-skilled workers.
• B) the cost of purchasing the signal must not be so costly that high-skilled workers do not value obtaining it.
• C) firms must be able to easily verify each worker's amount of schooling.
• D) some people must choose to not complete schooling.
• E) All of these are required for schooling to serve as a signal.

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Definitions:

Discounts

Discounts are reductions from the normal cost of goods or services, often offered to prompt sales, reward customers, or clear out inventory.

Price Discriminate

The strategy of selling the same product to different customers at different prices based on their willingness to pay.

Discount Coupons

Vouchers or codes that offer a rebate or reduction on the price of goods or services.

Grocery Store

A retail store that primarily sells food, both fresh and packaged, along with various household items.