Which of the following statements is correct?
A) The human-capital theory of education could be called a productivity-enhancing theory.
B) The human-capital theory of education could be called a productivity-revealing theory.
C) The signaling theory of education could be called a productivity-enhancing theory.
D) The signaling theory of education has been disproved by Princeton University economist Alan Krueger.

Question

Quizplus · Accepted Answer

The human-capital theory of education asserts that education enhances productivity, thus it can be called a productivity-enhancing theory.

Answer: C
 The signaling theory of education asserts that education serves as a signal to employers about a worker’s quality, rather than enhancing productivity. Therefore, it cannot be called a productivity-enhancing theory.

Answer: None of the above
 Option D is inaccurate, as Alan Krueger did not disprove signaling theory; rather, he conducted research showing that college selectivity (a signal) was not as significant a factor as previously believed in determining earnings. Thus, none of the statements are true.

Which of the Following Statements Is Correct