Suppose 40 Percent of All Potential Workers Are Highly Skilled

question 13

Multiple Choice

Suppose 40 percent of all potential workers are highly skilled and contribute $50,000 to the firm each year. The remaining 60 percent of potential workers are less skilled and contribute only $30,000 to the firm each year. When schooling is not used as a signaling device, how much is the firm willing to pay a worker chosen at random?

• A) $30,000
• B) $34,000
• C) $38,000
• D) $42,000
• E) $50,000

---

Definitions:

Occupational Aspirations

Refer to the professions or careers a person dreams of or aims to achieve in the future, affected by one's interests, abilities, and societal influences.

Increased Autonomy

A condition or state in which an individual or entity has more independence and self-determination than before.

Drug Use

The consumption of substances that alter the body or mind, which can include legal drugs (medications), illegal drugs, and other substances.

High-risk Students

Students who are considered at risk of failing academically due to various factors such as socioeconomic status, learning disabilities, or lack of support at home.