When Employers Sort Employment Applications into High-Ability and Low-Ability People

question 78

Multiple Choice

When employers sort employment applications into high-ability and low-ability people based on the attainment of a university degree (irrespective of major) ,they are providing evidence in support of which of the following

• A)the human-capital theory of education
• B)the signalling theory of education
• C)the principle that education enhances marginal productivity
• D)the neoclassical principle that most business owners are more interested in discriminating against a particular group than in maximizing profits

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Definitions:

Proposed Project

A planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

Net Present Value

The divergence in current value of cash inflows versus outflows over an established time frame.

Net Present Value

A method used to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period.

Project

An organized task or set of activities with a start and end date, aimed at achieving a specific goal or creating a unique product, service, or result.