The Wage of a Known High-Quality Worker,w_h,is $10,000

question 85

Multiple Choice

The wage of a known high-quality worker,w_h,is $10,000.The wage for a known low-quality worker,w_l,is $4,000.The share of the work force that is of high quality,s,is 0.5.For what value of the cost,c,of a college education that serves only as a signal of a high-quality worker does a pooling equilibrium exist?

• A) c > $3,000
• B) c < $3,000
• C) c < $1,000
• D) c = $2,500

Comprehend the various risks associated with investing, including interest rate, market, inflation, and business failure risks.

Understand how different factors, such as safety and liquidity, influence investment decisions.

Learn strategies for allocating funds for investing, including saving consistently and capitalizing on financial windfalls.

Acknowledge the impacts of economic changes on investment values.

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Definitions:

Human Development Index

An index measuring three basic dimensions of human development: life expectancy, education, and per capita income indicators, used to rank countries into tiers of human development.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach, to assess the relative value of the currencies and the cost of living.

Consumer Price Index

An index measuring the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Reserve Requirement

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by central banking authorities.