Jake and Harry Each Have 130 Hours of College Credit

Multiple Choice

Jake and Harry each have 130 hours of college credit from Impressive University. Each has 30 hours of economics. Jake has a bachelor's degree, while Harry is 3 credits short of required physical education classes and therefore does not have a degree. Each of them has one year of experience as a market analyst for ABC Company. Assuming that the physical education class would not enhance Harry's job performance, if Jake earns a higher salary than Harry, the ABC Company may subscribe to the

A) human capital theory.
B) discrimination theory.
C) compensating differential theory.
D) signaling theory.