Which Statement Best Represents the Idea Behind Signalling in Education

question 153

Multiple Choice

Which statement best represents the idea behind signalling in education

• A)Education can turn an unproductive person into a productive person.
• B)Most university graduates wouldn't be half as productive if it were not for the years they spend in the classroom.
• C)The more naturally productive someone is, the more they are inclined to educate themselves.
• D)Some schools turn out more productive students than others.

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Definitions:

Implicit Costs

The opportunity costs that arise from using resources that a business already owns rather than earning revenue from those resources elsewhere.

Explicit Costs

Direct, out-of-pocket expenses incurred in conducting a business activity, such as wages, rent, and materials.

Economic Profits

Profits earned by a company after accounting for both explicit (direct) and implicit (opportunity) costs.

Marginal-Cost Curve

A graph that shows the relationship between the marginal cost of producing an additional unit and the total quantity of the product produced.