Both screening and signaling:
A) correct inefficiency in the market.
B) allow more transactions to take place that are valuable to buyers and sellers.
C) can increase surplus gained in a market.
D) All of these statements are true.

Question

Quizplus · Accepted Answer

Both screening and signaling correct inefficiency in the market by providing information that reduces information asymmetry between buyers and sellers, allowing more valuable transactions to take place and increasing surplus gained in a market.

Both Screening and Signaling