Which of the following is TRUE about a college education as a signaling device?
A) It is a useful signal only if individuals choose majors related to their ultimate field of employment.
B) It is a useful signal only if a college education is open to all individuals, no matter what their previous level of educational accomplishment was.
C) It is a useful signal whether or not people actually learn anything in college.
D) It is a useful signal only if the job in question cannot be done without the preparatory coursework the college degree required.
E) It is less and less a useful signal in the post-industrial economy, where the skill sets employers need change so rapidly.
C
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A growing government budget deficit and national debt reduces economic growth because
A) it insures that future generations will have to pay the debt. B) it reduces public investment. C) it reduces household saving. D) it diverts private savings from the financing of private investment.
Of the determinants of labor productivity, the more important one is
A) the capital-labor ratio. B) the size of the labor force. C) total factor productivity. D) the hours worked by the labor force.