Which of the following theories would suggest that attending school does not improve productivity but that high-ability people are more likely to stay in school?
A)physical-capital theory
B)human-capital theory
C)signaling theory
D)neoclassical theory

Question

Quizplus · Accepted Answer

Signaling theory suggests that attending school may not necessarily improve productivity or skills, but instead serves as a signal to employers that an individual possesses certain desirable traits, such as intelligence, diligence, and conformity. High-ability people may be more likely to stay in school to signal these traits, even if attending school does not directly improve their productivity. Physical-capital theory focuses on the investment in physical resources, like equipment, while human-capital theory argues that education and training are investments in individuals that increase their productivity. Neoclassical theory emphasizes that education increases productivity by providing individuals with skills and knowledge that increase their market value. None of these theories specifically suggest that high-ability individuals are more likely to stay in school without the direct improvement of productivity.

Which of the Following Theories Would Suggest That Attending School