All of the following are examples of signaling EXCEPT:
A) offering a long warranty on a vehicle.
B) offering to work for a less-than-market salary.
C) requiring people to purchase health insurance.
D) obtaining a college degree.

Question

Quizplus · Accepted Answer

Requiring people to purchase health insurance is not an example of signaling. This is because it is a government policy rather than an action taken by an individual or firm to convey information about their quality or behavior. The other options are examples of signaling: offering a long warranty signals a company's confidence in the quality of its product, offering to work for less-than-market salary signals an employee's high level of dedication or skill, and obtaining a college degree signals a person's level of education and achievement.

All of the Following Are Examples of Signaling EXCEPT