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.
Question 2
The PDV of a perpetuity with a yearly payment of 500 at an interest rate of 5 is
A) 100.
B) 5,000.
C) 25,000.
D) 10,000.
E) 100,000.