Jay was just drafted by a professional baseball team, and was offered a record-breaking contract because of his potential. This is an example of
A)a human capital differential.
B)a compensating differential.
C)signaling theory.
D)the superstar phenomenon.

Question

Quizplus · Accepted Answer

The fact that Jay was offered a record-breaking contract because of his potential indicates that he is a potential superstar, and this is an example of the superstar phenomenon.

Jay Was Just Drafted by a Professional Baseball Team, and Was