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

---

Definitions:

Federal Income Tax

An annual charge imposed by the U.S. government on the income of individuals, businesses, trusts, and various legal bodies.

Exemptions

Deductions allowed by tax authorities on a taxpayer's income, often based on the number of dependents, reducing the taxable income.

W-2's Filing

The process of submitting the Form W-2, which reports an employee's annual wages and the amount of taxes withheld from their paycheck, to the IRS.

Maximum Penalty

The highest possible fine or punishment that can be imposed for a particular violation or offense under a legal or regulatory framework.