Suppose 40 Percent of All Potential Workers Are Highly Skilled

question 14

Multiple Choice

Suppose 40 percent of all potential workers are highly skilled and contribute $50,000 to the firm each year. The remaining 60 percent of potential workers are less-skilled and contribute only $30,000 to the firm each year. Schooling costs a highly skilled worker y per year, while it costs a less-skilled worker 2y per year. What range of y will support a signaling equilibrium?

• A) $0 < y < $50,000
• B) $5,000 < y < $10,000
• C) $5,000 < y < $20,000
• D) $10,000 < y < $20,000
• E) $20,000 < y < $50,000

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Definitions:

Attractive People

Individuals who are generally considered pleasing or appealing in appearance according to societal or cultural standards.

Nonconformist

An individual who does not conform to conventional or established norms, standards, or practices.

Prior To Marriage

Referring to the period or events that occur before the formal legal or ceremonial union of two people as partners in a personal relationship.

Names Of Partners

This term does not appear to be a standard key-term under general academic or professional contexts.