Tom, the Manager and Owner of a Small Company, Believes

question 34

Multiple Choice

Tom, the manager and owner of a small company, believes in the signaling theory of education, not the human capital theory. As such, Tom would be most likely to agree with which of the following quotes?

• A)"We encourage our employees to enroll in night classes to improve their on-the-job productivity."
• B)"We encourage our employees to participate in online seminars to learn new skills."
• C)"We pay higher wages to employees who have MBAs because, on average, their job performance is better than similar employees who do not have MBAs."
• D)"When we interview prospective employees at job fairs, we are looking for college graduates because they have the determination and follow-through to finish what they start."

---

Definitions:

European Nations

Countries located in Europe, characterized by diverse cultures, languages, and economies but often interconnected through political and economic unions.

Gold Standard

A currency regime where the national fiat currency's worth is directly pegged to gold.

Outflow Of Gold

refers to the movement of gold assets out of a country's economy, often highlighting trade imbalances or lack of confidence in the economy's standing.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.