Warranties, education, extracurricular activities are all examples of
A) market signals.
B) risk premiums.
C) tools that can correct the moral hazard problem.
D) incentives.

Question

Quizplus · Accepted Answer

Market signals are actions or attributes that convey information to others in the market. Warranties, education, and extracurricular activities serve as signals to indicate quality, capability, or reliability.

Warranties, Education, Extracurricular Activities Are All Examples of