If a College Degree Is Used to Signal High Ability,but

question 109

Multiple Choice

If a college degree is used to signal high ability,but the cost of a college degree is relatively high,

• A) a separating equilibrium is achieved.
• B) a pooling equilibrium is achieved.
• C) even low-ability workers will attend college.
• D) the share of high-ability workers must be 1.

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Definitions:

Soft Dry Cloth

A textile material that is both smooth to the touch and free of moisture, typically used for cleaning or drying surfaces.

Hot Water

Water at a high temperature, often used for cleaning, bathing, or as a remedy for certain ailments.

Visual Acuity

A measure of the clarity or sharpness of one’s vision, typically assessed by the ability to discern letters or numbers at a standardized distance.

Shiny Surfaces

Objects or materials with a reflective, glossy finish that can reflect light.