If Education Is a Signalling Device for High Ability, Employers

question 162

True/False

If education is a signalling device for high ability, employers will offer higher wages to educated workers.

---

Definitions:

Duty of Loyalty

The legal obligation of fiduciaries to act in the best interests of their beneficiaries or the entity they serve.

Right of First Refusal

A contractual right that gives its holder the option to enter a business transaction with the owner of something, before the owner is entitled to enter into that transaction with a third party.

Watered Stock

Shares that are issued by a company at a value much greater than its actual assets, typically leading to an inflated market value.

Business Judgment Rule

A principle of corporate governance that shields a corporation's board of directors from liability for decisions made in good faith, with due care, and in the best interests of the corporation.