Under the 'Signalling View' of Education, Obtaining a University Degree

question 165

Multiple Choice

Under the 'signalling view' of education, obtaining a university degree communicates valuable information to employers because:

• A)it is easier for high-ability people to get a degree than low ability people, so more high-ability people get degrees
• B)the high cost of education signals the employee's desire and commitment to an industry
• C)the high level of work needed to obtain a university education is a signal of effort
• D)the skills and knowledge leant at university increases an employee's marginal product

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Definitions:

Public Company Accounting Oversight Board

A nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.

SEC Oversight

Regulatory oversight exercised by the Securities and Exchange Commission, aiming to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.

Short-Swing Profits

Profits made from the sale of company stock within any six-month period by a statutory insider.

Statutory Insider

An individual or entity that possesses confidential information about a company due to their position or relationship to it, as defined by law.