In Order for Education to Be Effective as a Signal

question 90

Multiple Choice

In order for education to be effective as a signal of worker productivity it must be

• A) easy for everyone to get a college degree.
• B) costly for less productive workers to imitate.
• C) that the employee has taken classes in economics.
• D) none of the above make education an effective signal.

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Definitions:

Total Revenue

The total income generated from the sale of goods or services by a company.

Profitable One

An entity or venture that generates income exceeding its costs and expenses, thereby yielding a surplus or profit.

MC > MR

A condition where the marginal cost of producing an additional unit is greater than the marginal revenue gained from selling it, indicating it’s not profitable to increase production.

Profit Maximized

The point at which a firm achieves the highest possible profit, typically by adjusting output levels or prices.