In Order to Use Schooling as a Signal

question 18

Multiple Choice

In order to use schooling as a signal:

• A)The signal must be more costly for low-skilled workers than for high-skilled workers.
• B)The cost of purchasing the signal must not be so costly that high-skilled workers don't value obtaining it.
• C)Firms must be able to easily verify each worker's amount of schooling.
• D)Some people must choose to not complete schooling.
• E)All of the above are required for schooling to serve as a signal.

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Definitions:

Assists

In various contexts, this term refers to the action of helping or supporting.

Days Absent

The number of days an individual is not present at their scheduled location, often used in contexts like school or work attendance records.

Standard Deviation

A benchmark for the level of variation or the dispersion rate within a cluster of data.

Free Throw Percentage

The ratio of free throws made to the total number of free throws attempted, often used in basketball statistics.