Which of the Following Statements Is TRUE

Multiple Choice

Which of the following statements is TRUE?

A) Evidence suggests that schooling raises earnings only by raising productivity.
B) Sheepskin effects are consistent with signaling.
C) The sheepskin effect refers to evidence that students with a four-year college degree earn no more than students with four years of college but no degree.
D) The effects of signaling are the smallest for recent graduates who are just starting to work.