Which of the following events best exemplifies the concept of signaling?
A) A college student's parents, having learned that their child is short of money, send her a check for $1,000.
B) A new company making high quality bicycles at a reasonable price sends free bikes to reviewers working for bicycle magazines.
C) A grocery store maintains a policy of examining the driver's license of everyone who writes a personal check to purchase his groceries.
D) A university maintains a policy of considering for admission only those students who graduated among the top ten percent of their high school class.
Correct Answer:
Verified
Q359: Adverse selection is
A)the tendency of a person
Q360: Insurance companies charge annual premiums to collect
Q361: A woman gives her boyfriend a birthday
Q362: A home has been on the market
Q363: Which of the following is an example
Q365: Which of the following is an example
Q366: If the seller of a used car
Q367: Which of the following is not an
Q368: Budweiser typically purchases several 30 second advertising
Q369: Severe adverse-selection problems may result in
A)too few
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