In the Signaling Theory of Education

question 296

Multiple Choice

In the signaling theory of education,

• A)discrimination does not affect wage differentials.
• B)schooling makes workers more productive in the long-run.
• C)schooling makes workers more productive in the short-run.
• D)the worker signals to the employer that he is a valuable employee because he was willing to spend time to get an education.

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Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the company. They are held in the company’s treasury and can be reissued or retired.

Common Stock

Equity ownership in a corporation, representing a claim on its dividends and assets, typically granting voting rights.

Shares Outstanding

The total number of shares of a company that have been issued and are currently held by investors.

Stated Value

The nominal value assigned by a corporation to its issued shares, which might not reflect the market value but is used for internal accounting.