Effective signals
A) convey useful information from informed parties to uninformed parties.
B) impose little or no cost on the signaler.
C) cannot be conveyed accurately when there is an information asymmetry.
D) can be used by employers to alleviate the moral hazard problem in the workplace.

Question

Quizplus · Accepted Answer

Effective signals are designed to convey useful information from informed parties to uninformed parties, helping to reduce information asymmetry.

Effective Signals