Michael Spence Posits That High-Ability Workers Are Able to Choose

question 4

Multiple Choice

Michael Spence posits that high-ability workers are able to choose just the right amount of education to signal that they are high-ability because:

• A) high-ability workers find it less costly to acquire education than low-ability workers.
• B) high-ability workers have greater productivity gains from education than low-ability workers.
• C) employers value education in and of itself.
• D) high-ability workers enjoy school more than low-ability workers.
• E) low-ability workers value leisure more than high-ability workers.

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Definitions:

Mechanistic Organization

A form of organization characterized by rigid hierarchies, high levels of formalization, and centralized decision-making, often seen in traditional, large-scale businesses.

Organic Design

A design philosophy that promotes harmony between the natural environment and human habitation, often emphasizing sustainability and fluidity.

Status Quo

The existing state or condition of affairs, often used in the context of resisting change.

Force Field Analysis

A method used to identify and evaluate the forces that support or resist a particular change or decision.