British students apply to university before they complete their national examinations. Universities typically accept students with conditions, for instance, two A grades. Which concept of asymmetric information does this illustrate?
A) Signaling.
B) Screening.
C) Contingent contract.
D) a, b and c.

Question

Quizplus · Accepted Answer

Contingent contracts are agreements that are dependent on certain outcomes or conditions being met, such as achieving specific grades. In this scenario, universities offer conditional acceptances based on the future exam results of the students, which is a classic example of a contingent contract.

British Students Apply to University Before They Complete Their National