Suppose That a College Student Receives an Offer for a Summer

question 27

Multiple Choice

Suppose that a college student receives an offer for a summer internship with a stock brokerage firm. Unfortunately for the student, the internship is unpaid. Is it ever economically beneficial to accept an unpaid job?

• A)Yes, because the experience gained during the internship would increase the student's human capital.
• B)No, because the opportunity cost is too high.
• C)No, because the student is signaling to future employers that he or she is willing to accept low wages.
• D)Yes, because accepting an unpaid job signals to future employers that the student has stable personal finances.

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Definitions:

Verbal Abilities

Skills related to understanding, using, and processing words and language.

Stanford-Binet

An intelligence test designed to measure human intelligence and cognitive abilities, developed as a revision of the Binet-Simon scale.

Reliability

The degree to which test scores are free from errors of measurement, also, the capacity of an instrument to provide consistent results. See “test-re-test,” “alternative forms,” and “internal consistency”.

Validity

The degree to which all of the accumulated evidence supports the intended interpretation of test scores for the intended purpose. Validity is a unitary concept that attempts to answer the question: How well does a test measure what it’s supposed to measure?