Some software firms require that applicants have passed certain standardized certification tests before being hired.This policy is necessary when
A) cheap talk does not provide a credible signal.
B) cheap talk does provide a credible signal.
C) the interests of the firm and the applicant converge.
D) the applicant is honest about her abilities.

Question

Quizplus · Accepted Answer

Standardized certification tests provide a credible signal of an applicant's abilities and knowledge, whereas cheap talk may not be a reliable indicator of their actual skill level. By requiring applicants to pass these tests, the firm can avoid hiring candidates who exaggerate their qualifications and ensure that they can perform the duties required for the position.

Some Software Firms Require That Applicants Have Passed Certain Standardized