In a Labor-Market Separating Equilibrium with High-Skill and Low-Skill Workers

question 21

Multiple Choice

In a labor-market separating equilibrium with high-skill and low-skill workers and where a costly educational degree is used solely as a signal device,government can increase total social welfare by

• A) subsidizing school for low-skill workers.
• B) subsidizing school for all workers.
• C) eliminating schooling, i.e., banning wasteful signaling.
• D) subsidizing school for high-skill workers.

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Definitions:

Sleep Terrors

Episodes of screaming, intense fear, and flailing while still asleep, often paired with difficulty fully waking up, occurring predominantly in children.

Parasomnias

A group of sleep disturbances characterized by unusual actions, feelings, sensations, or dreams that appear during the process of falling asleep, throughout the sleep period, in transitions between stages of sleep, or upon waking.

Piercing Scream

A very loud, high-pitched sound made by a person, often as a response to extreme fear or distress.

Parasomnia

A category of sleep disorders that involve abnormal movements, behaviors, emotions, perceptions, or dreams occurring while falling asleep, sleeping, between sleep stages, or during arousal from sleep.