In the area of market signaling, education is a strong signal in the job market because
A) it tells employers that you have gained skills that will be useful in the work place.
B) education is costly to obtain.
C) education is less costly to obtain for highly productive individuals who are also likely to be highly productive in the work place.
D) firms can easily verify your level of education.

Question

Quizplus · Accepted Answer

Education serves as a signal in the job market because it is less costly for highly productive individuals to obtain, indicating to employers that these individuals are likely to be highly productive in the workplace as well.

In the Area of Market Signaling, Education Is a Strong