The Cost,c,of a College Education That Serves Only as a Signal

question 86

Multiple Choice

The cost,c,of a college education that serves only as a signal of a high-quality worker is $10,000.The wage of a known high-quality worker,w_h,is $30,000.The wage for a known low-quality worker,w_l,is $10,000.For what value of the share of the work force that is of high quality,s,is a pooling equilibrium possible?

• A) s > 0.5
• B) s = 0
• C) s = 0.25
• D) s < 0.45

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Definitions:

Frontal

Pertaining to the frontal lobe of the brain, which is involved in executive functions such as decision making, problem solving, and controlling behavior and emotions.

Parietal

Pertaining to the parietal lobe of the brain, involved in processing sensory information regarding the location of parts of the body as well as processing language and mathematics.

Occipital Lobes

The region of the brain located at the back of the head, responsible for processing visual information from the eyes.

Anterior Commissure

A bundle of nerve fibers connecting the two hemispheres of the brain, playing a role in pain sensation and other functions.