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A Lawyer Who Drives a Beat-Up Car and Wears Frumpy

Question 134

Multiple Choice

A lawyer who drives a beat-up car and wears frumpy clothes may have a hard time getting clients. Potential clients may conclude from his appearance that he is poor, and if he is poor, he probably is not very good. If this is true for a lawyer, dressing in expensive and stylish clothing is a way of:


A) internalizing externalities.
B) changing a nonrival good into a rival good.
C) screening.
D) signaling quality.

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