In a world of imperfect information, an economic reason students go to college is to:
A)pool their risk of unemployment.
B)reduce their uncertainty about the future.
C)signal their abilities to employers.
D)acquire more information.

Question

Quizplus · Accepted Answer

In an imperfect information world, signaling is an economic reason students go to college. By obtaining a degree, they are able to signal their abilities to potential employers, improving their chances of securing employment and potentially earning a higher salary. Pooling risk, reducing uncertainty, and acquiring more information are also potential benefits of going to college, but they are not necessarily economic reasons.

In a World of Imperfect Information, an Economic Reason Students