It Is Spring,and Several Graduates of State U Are Seeking

question 16

Multiple Choice

It is spring,and several graduates of State U are seeking employment.State U graduates have evenly distributed GPAs,from 2.0 to 4.0,with an average GPA of 3.0.The largest employer in town,Acme Dynamite,is interviewing candidates,hoping to hire a few hard workers.While Acme does not require students to submit a transcript with their applications,the hiring officer believes that high GPAs signal a willingness to work hard.
Suppose that all State U students take the same courses and have the same academic abilities on entering college.They differ only by their tolerance for intensive study.If this is the case,a high GPA

• A)does not provide useful information to Acme,since all applicants are of equal ability.
• B)does not provide useful information to Acme,since all applicants took the same classes.
• C)identifies students who don't mind studying,so is not costly information to convey and therefore not credible.
• D)is a costly-to-fake indication that the high-GPA student is a hard worker.

---

Definitions:

Trading Partner

A country, group of countries, or an entity with which another conducts trade and business transactions.

Workforce

The total number of people employed or seeking employment in a country or specific sector.

Service Sector

The segment of the economy that provides intangible goods and services, such as healthcare, education, and financial services.

Trading Nation

A country whose economy is highly engaged in international trade, evidenced by a high ratio of exports and imports to its gross domestic product.