Which of the following statements is not correct?
A)Both the human capital theory and the signaling theory of education could explain why college graduates earn more than high school graduates.
B)The signaling theory of education suggests that the ability to complete a college degree is correlated with the ability to perform well in the labor market.
C)If the human capital theory of education is correct, a government policy that pays for additional schooling for all workers would not increase wages.
D)If the signaling theory of education is correct, a government policy that pays for additional schooling for all workers would not increase wages.

Question

Quizplus · Accepted Answer

If the human capital theory of education is correct, additional schooling should increase wages as it leads to workers acquiring more skills and knowledge. Therefore, statement C is not correct as it contradicts the theory.

Which of the Following Statements Is Not Correct