Which of these problems is encountered in labor markets where the abilities of the workers are intangible or unmeasurable?

Question

Which of these problems is encountered in labor markets where the abilities of the workers are intangible or unmeasurable?​

Quizplus · Accepted Answer

When the abilities of workers are intangible or unmeasurable, it becomes difficult for employers to assess their true value. This leads to the adverse selection problem, where the best workers may not be hired and instead, the employer may end up with suboptimal choices.

Which of These Problems Is Encountered in Labor Markets Where