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Michael Spence Proposed the Signaling Hypothesis

Question 154

Multiple Choice

Michael Spence proposed the signaling hypothesis. According to this hypothesis,


A) workers signal their desire to work for a particular firm by the way they answer questions in job interviews.
B) employers signal their preferences for the type of employee they wish to hire through job ads and the questions they ask during job interviews.
C) employers view a college education as a signal that potential workers have certain desirable qualities.
D) high wages are a signal that workers have skills that are highly valued by employers.

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