Both signaling and screening:
A) reduce efficiency in the market.
B) are effective ways to increase information available to both parties.
C) benefit the sellers but harm the buyers.
D) benefit the buyers but harm the sellers.

Question

Quizplus · Accepted Answer

Signaling and screening both aim to increase the information available to both parties and allow for better decision making. This ultimately leads to more efficient outcomes in the market. While there may be some costs associated with these processes, the benefits outweigh them. They do not necessarily benefit one party over the other.

Both Signaling and Screening