Education and advertising are two examples of:
A)signalling
B)adverse selection
C)moral hazard
D)the Condorcet paradox

Question

Quizplus · Accepted Answer

Education and advertising are both examples of signalling, which is the process where one party sends a costly signal in order to convey information to another party. In education, individuals invest time and money to obtain degrees or certifications, which signal to potential employers that they have certain skills and abilities. In advertising, companies spend money on marketing campaigns to signal the quality and value of their products to consumers.

Education and Advertising Are Two Examples Of