Both signaling and screening:
A)are effective ways to increase information available to both parties.
B)decrease efficiencies in the market.
C)decrease surplus gained in a market.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

Signaling and Screening both increase the information available to both parties, allowing for more efficient and informed transactions to take place. They do not necessarily decrease efficiencies or surplus gained in a market.

Both Signaling and Screening