Suppose in the Market for Labor Years of Education Is

Multiple Choice

Suppose in the market for labor years of education is used as a signal of ability,and that there is a separating equilibrium such that high-ability workers receive E_H years of education and low-ability workers receive E_L years.Each of the following must be true about E_L and E_H EXCEPT:

A) E_H cannot be so low that it is easy for low-ability workers to masquerade as high-ability workers.
B) E_H cannot be so high that high-ability workers choose to masquerade as low-ability workers.
C) E_H and E_L cannot be equal.
D) E_H may be higher or lower than E_L.