Michael Spence Proposed the Signaling Hypothesis

question 139

Multiple Choice

Michael Spence proposed the signaling hypothesis. According to this hypothesis,

• A) workers signal their desire to work for a particular firm by the way they answer questions in job interviews.
• B) employers signal their preferences for the type of employee they wish to hire through job ads and the questions they ask during job interviews.
• C) employers view a college education as a signal that potential workers have certain desirable qualities.
• D) high wages are a signal that workers have skills that are highly valued by employers.