Chao is in an interview for a sales job that requires no experience.He is trying to portray himself as a highly enthusiastic,energetic person with high-level communication and interpersonal skills.The interviewer is convinced that Chao should be hired as a salesperson in the company.However,in his resume,Chao had not mentioned his previous work experience as he was fired from that job because he used illegal drugs.Which of the following does this scenario best illustrate?
A) information asymmetry
B) principal-agent problem
C) experience-curve effect
D) learning-curve effect

Question

Quizplus · Accepted Answer

The scenario best illustrates information asymmetry. Information asymmetries are situations in which one party is more informed than another, because of the possession of private information.

Chao Is in an Interview for a Sales Job That