Screening occurs when
A) an informed party acts to reveal his private information.
B) an informed party acts to conceal his private information.
C) an uninformed party acts to induce the informed party to reveal private information.
D) one informed party acts to prevent another informed party from revealing private information.

Question

Quizplus · Accepted Answer

According to the definition of screening in economics, it occurs when an uninformed party (such as an employer) uses certain actions or signals to induce an informed party (such as a job candidate) to reveal their private information (such as their skills or abilities). Therefore, option C is the correct choice. Option A refers to signaling, option B refers to hiding information, and option D refers to blocking information.

Screening Occurs When