When Employers Sort Employment Applications into High-Ability and Low-Ability People

question 129

Multiple Choice

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.

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Definitions:

Cohabitating

Living together in a romantic relationship without being legally married.

Depressed

Experiencing a persistent mood of sadness, feeling of hopelessness, or lack of interest in activities, often a symptom of depression.

Elderly Years

The period of life characterized by ages 65 and above, often associated with retirement and increased health care needs.

Marital Capital

Financial and emotional benefits built up during a long-standing marriage, which tend to hold a couple together.