Suppose 10% of All Workers Are of High Ability

question 114

Essay

Suppose 10% of all workers are of high ability.If a firm knows a worker's ability,workers of low ability are paid $20,000 and workers of high ability are paid $30,000.A college degree can signal ability,and the cost of the degree is $11,000.Will there be a pooling equilibrium or a separating equilibrium?

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Code of Conduct

A set of rules outlining the norms, rules, and responsibilities or proper practices for an individual, party or organization.

Penalties

The consequences or punishments assigned for breaking a rule or law.

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Legal guidelines protecting the use of original works of authorship, including literary, musical, and artistic works.

Moral Minimum

The least amount of ethical behavior expected from an individual or organization in society, often pertaining to honesty and fairness.