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."

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Definitions:

Tragedy of the Commons

A concept illustrating how individual users acting independently according to their own self-interest can ultimately deplete or spoil a shared limited resource, despite it being in no one's long term interest.

Social Trap

Situations where individuals or groups engage in behaviors that are beneficial in the short term but detrimental in the long term, often leading to collective negative outcomes.

Simulation Game

A video game or computer game that replicates real-life activities, systems, or environments for training, research, or entertainment purposes.

Competitive Choice

The concept involves selecting alternatives based on a competitive framework where the best option is chosen through comparison and evaluation against others.