Education · Economics of Education
According to Michael Spence's job-market signaling theory (1973), which among the following basic assumptions are considered true? A. Individuals differ inherently in their potential productivity. B. Job-market productivity is entirely person-specific and not altered by signaling costs. C. Individuals do not know their own productivity beforehand, but employers can infer it through signals. D. Educational attainment or schooling levels can be observed by employers without incurring costs. E. Individual productivity is directly enhanced and modified by the process of schooling itself. Choose the most appropriate answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1C, D and E Only
- 2A, B and D Only✓
- 3A, C and E Only
- 4B, C and D Only
Correct answer
A, B and D Only
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