Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 19 - Part VI - Earnings and Discrimination - Quick Check Multiple Choice - Page 410: 4

Answer

c. signaling

Work Step by Step

In the case of Vivian, the business consulting firm which recruited her thinks that anyone who can with a maths degree must be very smart. This is explained by the concept of Signaling. It explains that people with higher intellectual capabilities use education as a way to signal their high abilities to employers.
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