Which strategy is NOT used for dealing with adverse selection in the labour market?
A) careful screening of an applicant
B) examination of signals from an applicant
C) obtaining reference letters from an applicant's previous place of employment
D) openly asking candidates of any hidden work problems from their past

Question

Quizplus · Accepted Answer

Openly asking candidates of any hidden work problems from their past is not a common strategy for dealing with adverse selection in the labour market. This approach may not yield honest answers from the candidates, and it may also create a legal risk for the employer as some past work-related issues may be protected under privacy laws. The other three strategies - careful screening, examination of signals, and obtaining reference letters - are commonly used to mitigate adverse selection by gathering information about the candidate's skills, experience, and work history.

Which Strategy Is NOT Used for Dealing with Adverse Selection