When Relatively Few Workers Have High Ability

question 20

Multiple Choice

When relatively few workers have high ability,

• A) they will settle for the average wage.
• B) they will want to signal their ability.
• C) the premium for high ability is less than when most workers have high ability.
• D) they do not need to signal their ability.

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Definitions:

One Quarter

A term referring to one-fourth of a year, used in financial and business contexts to divide the fiscal or calendar year into four periods for reporting purposes.

One Year

A period consisting of 12 consecutive months.

Unearned Revenue

An accounting term referring to money received for a product or service yet to be delivered or performed.

Customers Pay

This term refers to the action of clients or buyers giving money in exchange for goods or services.