If a College Degree Is Used to Signal High Ability,but

question 109

Multiple Choice

If a college degree is used to signal high ability,but the cost of a college degree is relatively high,

• A) a separating equilibrium is achieved.
• B) a pooling equilibrium is achieved.
• C) even low-ability workers will attend college.
• D) the share of high-ability workers must be 1.

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Definitions:

Forebrain

The anterior part of the brain, including the cerebrum and structures connected with it, responsible for complex behavioral and cognitive functions.

Respite Care

Temporary relief for caregivers, providing short-term care for individuals with disabilities, chronic illnesses, or the elderly.

Medicare Benefits

The healthcare services and coverage provided under Medicare, a federal health insurance program for people aged 65 and older, and some younger individuals with disabilities.

Terminally Ill

Referring to a person suffering from a disease that is incurable and expected to lead to death within a short period.