Both screening and signaling:
A) are ways to decrease information asymmetry between two parties.
B) correct inefficiency in the market.
C) can increase surplus gained in a market.
D) All of these statements are true.

Question

Quizplus · Accepted Answer

Both screening and signaling are methods used to reduce information asymmetry between buyers and sellers, correct market inefficiencies, and increase the benefits gained by both parties. Therefore, option D is the correct choice.

Both Screening and Signaling