Explain how education as a signal works

Assignment Help Basic Computer Science

Reference no: EM131357599

Open Word and answer the following questions. Save the document and print it when you are done.

1. Suppose a firm is trying to determine whether an applicant is of low or high ability and it believes people with long fingernails have higher ability. Would fingernail length be an effective signal? Draw a graph to support your answer.

2. Draw a graph that shows how education as a signal could be used to separate low- and high-ability job applicants. Explain how education as a signal works.

3. Draw a graph in which education as a signal fails because the signal level is set too high. Explain why the signal fails.

4. College education as a signal clashes with human capital theory, which says that educated workers earn more because they were made more productive by their education. What does signaling theory say about the value of education? In other words, according to signaling, why are educated workers paid more?

5. Why has it been difficult to determine with data whether human capital or signaling theory is right about college education?

Reference no: EM131357599

Questions Cloud

Write a response about the given post : Interviews tend to focus more on gathering valuable information and knowledge related to the investigation, and typically this information comes from victims of the crime or witnesses that otherwise have no relationship to the criminal activity in..

Assessing the performance of the us economy over time : Define real and nominal GDP. Which form of GDP (real or nominal) do you believe should be utilized when assessing the performance of the US economy over time? Why?

Explore rationale behind equal prices for unequal distances : Explain the rationale behind equal prices for unequal distances in air travel using supply, demand, and cost curves. Your paper should reflect scholarly writing and current APA standards.

Indicate about impact on consumers single firm shut down : In a perfectly competitive market an individual firm (seller) faces a perfectly elastic (horizontal) demand curve, set at the market price. With a horizontal demand curve, is there any consumer surplus? Why or why not? What does this indicate abou..

Explain how education as a signal works : Suppose a firm is trying to determine whether an applicant is of low or high ability and it believes people with long fingernails have higher ability. Would fingernail length be an effective signal? Draw a graph to support your answer.

Naming the system-inequality and work in global economy : "The Neoclassical/Neoliberal Dogma," and chapter 6, "A Radical Economic Perspective," from Naming the System: Inequality and Work in the Global Economy by Michael D. Yates. Comparing the key arguments made by neoclassical and radical economists. T..

Analyze current health care delivery structure in your state : Analyze the current health care delivery structure in your state. Compare and contrast the major determinants of healthcare market power.

Write a wellness initiative encompasses the ideals : You need someone to write a wellness initiative encompasses the ideals for your own corporate wellness program and describes how you will engage employees. (I have the company name and vision statement). This assignment should be considered your f..

What is required to apply it into business : What is required to apply IT into business - How does business use IT? (internally such as staff, employees, and externally such as customers, suppliers)

User Account

All Pages