If Low-Quality Workers Are Unable to Obtain a College Degree,then

question 55

Multiple Choice

If low-quality workers are unable to obtain a college degree,then a separating equilibrium can occur if

• A) the cost of obtaining a degree is less than the wage premium paid to those who have obtained the degree.
• B) the cost of obtaining a degree is greater than the wage premium paid to those who have obtained the degree.
• C) the cost of obtaining a degree is zero.
• D) the wage premium paid to those who have obtained the degree is positive.

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Definitions:

Cash Dividend

A payment made by a company out of its earnings to shareholders in the form of cash.

Date of Record

The cut-off date set by a company in order to determine which shareholders are eligible to receive a dividend or distribution.

Three-For-One Split

A stock split in which each shareholder receives three new shares for each share they currently own.

Stock Price

The stock price is the cost of a single share of a company's stock, reflecting the market's value and investors' perceptions of the company's future prospects.