If the Signaling Theory of Education Is Correct

question 158

Multiple Choice

If the signaling theory of education is correct,

• A)workers with more years of formal schooling will earn less than workers with fewer years of formal schooling.
• B)additional years of formal schooling do not increase a worker's productivity.
• C)workers with more years of formal schooling are less likely to be affected by ability, effort, and chance.
• D)men are more likely to earn more than women because men are more likely to have graduated from college.

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Definitions:

Monthly Basis

Refers to something that occurs, is measured, or is evaluated once every month.

Compounded Monthly

This refers to the method by which interest earnings are calculated on a monthly basis, with each month's interest being added to the principal for the calculation of the next month's interest.

Loan Rate

The interest rate applied to the amount of money borrowed from a lender, typically expressed as an annual percentage rate (APR).

Monthly Payment

The amount that is due every month to repay a loan, typically consisting of both principal and interest components, over a set period.