Screening is a process that is employed by:
A) a party at an informational advantage.
B) a party at an informational disadvantage.
C) both parties in cases of information asymmetry.
D) both parties in cases of equal and perfect information.

Question

Quizplus · Accepted Answer

Screening is a process that is primarily used by a party at an informational disadvantage to try to select or filter out certain options or candidates. The goal is to reduce the risk of adverse selection, which occurs when the other party has more information and can choose options or candidates that are more favorable to them. Therefore, choice (B) is the best answer.

Screening Is a Process That Is Employed By