In the Area of Market Signaling, Education Is a Strong

question 92

Multiple Choice

In the area of market signaling, education is a strong signal in the job market because

• A) it tells employers that you have gained skills that will be useful in the work place.
• B) education is costly to obtain.
• C) education is less costly to obtain for highly productive individuals who are also likely to be highly productive in the work place.
• D) firms can easily verify your level of education.

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Definitions:

Total Output

The aggregate quantity of goods or services produced by an economy, sector, or firm within a given period.

Specialize

Focus on a specific area of expertise or production to achieve greater efficiency.

Production Possibilities

A curve representing all possible combinations of maximum outputs that could be produced with a fixed amount of resources.

Consumption Possibilities

The range of goods and services that can be consumed given a consumer's income and prices.