Question

Provide a definition for both terms and explain how these two terms relate to each other.

1. Signaling & Sorting 2. Returns to Education

Answer 1

1.Signaling is the exchange of information between invovlved points in the network that sets up controls.It is to convey information or instructions by means of gesture,action or sound.

Sorting is a process of arranging items systematically and has two common yet distinct meaning.It is to arrange items in a sequence by certain order.

2.Returns to education is an understanding that individual can place themselves in a position to sell their labor services at the higher prices "investing" in their human capital.It is an investment that increases the market skills and productivity of individuals who undertake it.

The relation between these two term is that they convey a significant meaning of relating and sorting them by their importance and involving a network of communication for a better result.