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:

Animal Spirits

A term used to describe human emotions and psychological factors that drive consumer confidence and economic decision-making.

Real GDP

An inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year, expressed in base-year prices.

Investment

The process of distributing usually monetary resources with the goal of earning income or making a profit.

Keynes

Refers to John Maynard Keynes, a British economist whose theories on government spending and monetary policy revolutionized economic thought and policy, especially during economic recessions.