People faced with adverse selection use which of the following strategies to deal with it?
A)screening
B)signals
C)reputation
D)screening, signals, reputation

Question

Quizplus · Accepted Answer

Adverse selection can be dealt with through a combination of screening, signals, and reputation strategies. Screening involves gathering information to differentiate between high-risk and low-risk individuals. Signals are actions or characteristics that provide information about an individual's quality or risk level. Reputation involves building a good reputation over time by consistently providing high-quality products or services. Using a combination of these strategies can help mitigate the negative effects of adverse selection.

People Faced with Adverse Selection Use Which of the Following