Which of the following is an example of screening?
A) Selling pollution permits to polluters to induce the lowest-cost pollution reducers to cut back on pollution
B) Reducing pollution to the point at which the marginal cost of the pollution equals the marginal benefit
C) A car buyer asking the seller if the car is a lemon
D) An employer requiring job applicants to provide references

Question

Quizplus · Accepted Answer

Screening involves actions taken by the uninformed party to determine the information held by the informed party. In this case, an employer requiring job applicants to provide references is an example of screening, as it helps the employer gather information about the applicant's qualifications and reliability.

Which of the Following Is an Example of Screening