If a College Degree Is Used to Signal High Ability,but

question 109

Multiple Choice

If a college degree is used to signal high ability,but the cost of a college degree is relatively high,

• A) a separating equilibrium is achieved.
• B) a pooling equilibrium is achieved.
• C) even low-ability workers will attend college.
• D) the share of high-ability workers must be 1.

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Definitions:

Control Group

In experimental research, a group of subjects that does not receive the experimental treatment and is used as a benchmark to measure how the other tested subjects perform.

Randomization

A method used in experiments involving the random allocation of participants or subjects to different groups to ensure fairness and objectivity.

Aggression

Behavior aimed at causing harm or intimidation to another, either physically or psychologically.

Natural Social Settings

Environments where social interactions occur organically without premeditated or artificial influence.