In the Context of Hiring and Recruitment, Which of the Following

question 6

Multiple Choice

In the context of hiring and recruitment, which of the following is not true of a sorting device?

• A) It is an integral part of human capital theory.
• B) It provides an alternative explanation of the positive correlation between education and earnings.
• C) It involves an alternative theory to investment in training and education.
• D) It illustrates the more general phenomenon of signaling in markets.

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Definitions:

Short-Run Equilibrium

A state in a market where supply equals demand, but only considering a period in which some factors, like production capacity, remain constant.

Constant-Cost Industry

An industry in which the entry and exit of firms have no effect on the prices firms in the industry must pay for resources and thus no effect on production costs.

Long-Run Economic Profits

Profits earned by a firm when all resources are adjusted to their long-term optimal level, indicating the firm is in equilibrium and cannot earn higher profits by altering production.

Free Entry And Exit

A situation in a market where firms can enter and leave the industry without facing significant barriers or costs, promoting competition.