According to the signaling theory of education,better-educated workers (i) signal their higher marginal productivities.
(ii) are likely to be high-ability workers.
(iii) are in scarce supply in less developed countries.

Question

According to the signaling theory of education,better-educated workers (i)	signal their higher marginal productivities.
(ii)	are likely to be high-ability workers.
(iii)	are in scarce supply in less developed countries.

Quizplus · Accepted Answer

According to the signaling theory of education, better-educated workers signal their higher marginal productivity to potential employers. This means that they can contribute more to the company and are therefore more valuable to hire. Additionally, better-educated workers are likely to be high-ability workers, as they have demonstrated the ability to acquire and apply knowledge and skills effectively. However, the signaling theory of education does not necessarily suggest that better-educated workers are in scarce supply in less developed countries, so option (iii) is not correct.

According to the Signaling Theory of Education,better-Educated Workers (I) Signal Their