Suppose Workers with a College Degree Are Paid a Lifetime

Multiple Choice

Suppose workers with a college degree are paid a lifetime income of $500,000 and workers without a college degree are paid $300,000. The cost of obtaining a college degree for high-productivity workers is $100,000. For a college degree to serve as a useful productivity signal, the cost of a college degree for low-productivity workers must be:

A) greater than $200,000.
B) less than $200,000.
C) greater than $100,000.
D) less than $100,000.