If Diplomas Work Efficiently in Signaling Productive Capabilities to Employers,the

question 22

Multiple Choice

If diplomas work efficiently in signaling productive capabilities to employers,the resulting equilibrium

• A) will be a separating equilibrium.
• B) will be a pooling equilibrium.
• C) will always be inefficient.
• D) will never be efficient.

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Definitions:

Witnesses' Signatures

The act of signing a document by someone who observes the signing process, to confirm its authenticity or the signers' agreement.

Revocation

The act of officially canceling or withdrawing a decision, offer, or legal right, often used in contexts such as contracts, wills, and powers of attorney.

Divorce

The formal termination of a marital union by a recognized authority, usually a court or a legal institution.

Charitable Trust

A legal arrangement in which assets are held and managed by one party for charitable purposes, providing benefit to the public or a segment of the public.