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True or False and explain why or how. Draw graphs as appropriate. a) Pell Grants are...

True or False and explain why or how. Draw graphs as appropriate.

a) Pell Grants are grants that Federal government gives out so that low income students can afford college. These grants are useful according to the human capital model as well as the signaling model.

b) Both signaling and human capital models can explain racial disparities in education levels.

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Answer #1

a. True. Pell Grants are given to the students of low income households to complete their college education. Yes, these grants are useful according to the human capital model and signalling model because it helps these students to acquire high standards of education and thus separate the educated from the uneducated and signals a higher wage rate.

b. True. The signalling and human capital models can together explain the racial disparities in the education model.These models depict that employers use wage to statistically discriminate.

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