Cheap talk works at placing workers in the right job as long as
A) the interests of the worker and the firm coincide.
B) all workers want the most demanding jobs regardless of their abilities.
C) workers have different ability levels that are unknown to firms.
D) firms are not profit maximizers.

Question

Quizplus · Accepted Answer

Cheap talk can effectively place workers in the right job when the interests of the worker and the firm align, as this alignment encourages honest communication about abilities and job requirements.

Cheap Talk Works at Placing Workers in the Right Job