An example of the inefficiency of signaling is:
A) that obtaining a college education takes at least four years.
B) engagement rings are relatively inexpensive.
C) changing a wife's name after the wedding requires much paperwork.
D) work experience is a better indicator of IQ.

Question

Quizplus · Accepted Answer

Obtaining a college education taking at least four years is an example of inefficiency in signaling because the time and resources spent may not directly correlate with the skills or productivity gained, yet it serves as a signal to employers of a candidate's capabilities.

An Example of the Inefficiency of Signaling Is