Conspicuous consumption is an effective signal of ability if high-ability people:
A)tend to have low-paying but prestigious jobs.
B)are famous.
C)tend to receive the highest salaries.
D)save most of what they earn.

Question

Quizplus · Accepted Answer

If high-ability people tend to earn the highest salaries and, as a result, spend the most on high-quality goods and services, then this will lead people to make inferences about a person's ability based an the amount and quality of the goods that he or she consumes.

Conspicuous Consumption Is an Effective Signal of Ability If High-Ability