The result of effective screening and signaling can be:
A) more transactions take place.
B) surplus is increased for buyer and/or seller.
C) more information is credibly shared.
D) All of these statements are true.

Question

Quizplus · Accepted Answer

Effective screening and signaling can lead to more transactions taking place, as buyers and sellers are able to find each other more efficiently. Additionally, by reducing information asymmetry, surplus can be increased for both parties, resulting in a better outcome for all involved. Finally, by providing credible information, both sides can make informed decisions and avoid potential pitfalls, leading to a more efficient and effective market overall.

The Result of Effective Screening and Signaling Can Be