An employer has narrowed a list of applicants down to two individuals. The two candidates look

nearly identical on paper, but one of them has earned a four-year college degree. The employer
decides to offer employment to the college graduate. What does this example illustrate?
(1 point)

the income effect

the screening effect

the learning effect

the substitution effect

The example illustrates the screening effect, which is the concept that having a college degree can serve as a signal to potential employers of certain desirable qualities or characteristics in a job candidate.