Annie, a high school student, babysits to earn extra cash. In order to differentiate herself from other babysitters, Annie took a babysitting course from the Red Cross. This is an example of a market signal.

Question

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Taking a babysitting course from the Red Cross serves as a market signal because it communicates to potential clients that Annie has a certain level of training and expertise, differentiating her from other babysitters who may not have such qualifications.

Annie, a High School Student, Babysits to Earn Extra Cash