Which of the following events best exemplifies the concept of signaling?
A) A college student's parents, having learned that their child is short of money, send her a check for $1,000.
B) A woman, who is trying to win the love of a certain man, buys him a very personal gift.
C) A grocery store maintains a policy of examining the driver's license of everyone who writes a personal check to purchase their groceries.
D) A university maintains a policy of considering for admission only those students who graduated among the top ten percent of their high school class.
Correct Answer:
Verified
Q18: A worker knows more than his employer
Q19: In economics,a difference in access to relevant
Q20: The temptation of imperfectly-monitored workers to shirk
Q22: The classic example of adverse selection is
Q82: "Signaling" refers to actions by an informed
Q84: Screening occurs when
A) an informed party acts
Q125: On car insurance policies,State Ranch Insurance Company
Q139: When the buyer knows less than the
Q348: The Latin term caveat emptor, meaning "let
Q369: Severe adverse-selection problems may result in
A)too few
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents