In economics, the term "signaling" refers to a way of lessening the problem of:
A) free riders.
B) negative externalities.
C) bad information by all market participants.
D) unequal information between buyers and sellers.

Question

Quizplus · Accepted Answer

Signaling is a method used to address the issue of asymmetric information, where one party (usually the seller) has more information than the other (usually the buyer). By signaling, the informed party can convey credible information to the less informed party to reduce this information gap.

In Economics, the Term "Signaling" Refers to a Way of Lessening