The Signaling Model of Education Would Be Ineffective If

question 7

Multiple Choice

The signaling model of education would be ineffective if:

• A) skills learned in school were useful in employment and could be effectively tested.
• B) the costs of acquiring education were equal for individuals of different abilities.
• C) individuals could not identify their own abilities.
• D) b and c.
• E) all of the above.

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Definitions:

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its earnings before interest and taxes (EBIT).

Income Statement

A financial statement that shows a company's revenues and expenses, ultimately revealing the net profit or loss for a specified period.

Accounts Receivable Turnover

A financial ratio that measures how many times a business can turn its accounts receivable into cash during a period.

Equity Multiplier

A financial ratio that measures a company's leverage by comparing total assets to shareholders' equity, illustrating the extent to which a company is financed by debt.