15) The wage differential between the average college grad and the average high

Question

15) The wage differential between the average college grad and the average high school grad is LARGER THAN the return an individual earms from going to college because: (A) the average college grad has a higher level of native ability (B)the average high school grad has a higher level of native ability (C) college does nothing to increase a worker's productivity (D) none of these 16) The signaling-screening model assumes: (A) education does NOT increase a worker's productivity on the job (B) college grads tend to have a higher level of native ability (C) employers use the college degree as a signal that the worker has a higher level of native ablity (D) all of these Ess**Axa

Explanation / Answer

16) The answer is D) all of these

Because the signaling -screening model asumes that employers might use evidence of worker education as a means of screening or sorting workers likely to have high ability into more demanding jobs and again education does not increase productivity but merely flags workers is likely ro be productive especially becauseof thier innate abilities

15) The answer is A-) the average college grad has a higher level of native ability.

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