Suppose that an economics department is offering a student exchange program with a university in Giessen, Germany. If the department requires students to submit an essay in order to be considered for the program, the essay may be an example of
A)signaling.
B)screening.
C)monitoring.
D)principal.

Question

Quizplus · Accepted Answer

The essay serves as a screening mechanism to assess the students' qualifications and abilities. Screening is the process of using information to sort individuals based on their characteristics, distinguishing between those who are likely to succeed in a particular situation from those who are not. Signaling refers to individuals using information to convey their abilities or attributes, monitoring refers to keeping track of performance, and principal refers to a person or entity that delegates tasks to an agent.

Suppose That an Economics Department Is Offering a Student Exchange