00:01
So for this question, we're talking about what happens when a business hire someone just because basically they have a degree, and specifically in this case, a degree in math.
00:12
And so we know that it's not a compensating differential because compensating differentials usually have to do with the amount you get paid to kind of make up for a difference in the job.
00:24
So again, that has to do with differences in jobs, kind of self -explanatory.
00:29
They're differential in different jobs.
00:32
And then if we're looking at answer b, human capital, yes, they have a math degree, and so yes, they probably are a little bit more productive in things that have to do with math and specifically for business consulting, probably more productive.
00:47
However, the job doesn't require any of the mathematics.
00:51
That's part of the problem, right? so we know that here they're not getting hired because of their math skills or because of the productivity.
00:59
And so usually that human capital will have to do with something about their productivity and their skills, not necessarily what's occurring here.
01:09
C, signaling.
01:11
So that is actually the correct answer here.
01:13
And signaling is happening because basically by robin having a math degree, she is signaling to the company that i am a high ability person...