Situations involves screening or signalling

Assignment Help Business Economics

Reference no: EM13838573

Say whether each of the following situations involves screening or signalling.

a. Auto shops and motels advertise that they are AAA-approved:

b. Employers check interviewees Face book or MySpace profiles before hiring one of them:

c. Applicants must pass an exam before becoming eligible for a civil-service position:

d. People wear expensive clothing with large brand names or logos:

Reference no: EM13838573

Questions Cloud

Consumption bundles : We say that the consumption bundles that Mei can afford but that do not use up her entire income lie:

Examples of statistical discrimination : In a market for car insurance, which of the following are examples of statistical discrimination?

Maximizing his utility in consumption of both goods : Steven consumes only two goods, both of which are normal goods. He is maximizing his utility in consumption of both goods. Now assume the price of one of the goods increases. How should Steven's consumption change?

Online dating service : Jane uses an online dating service. For each of the following activities say whether Jane is screening or signaling.

Situations involves screening or signalling : Say whether each of the following situations involves screening or signalling.

Situations is likely to involve moral hazard : Which of the following situations is likely to involve moral hazard?

Situations is likely to involve adverse selection : Which of the following situations is likely to involve adverse selection?

What is the internal rate of return of investment : Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch has a first cost of $110,000 and a useful life of 15 years. At the end of its useful life, the punch has no salvage value..

Aggregate demand decreased during the great depression : As a result of several factors, aggregate demand decreased during the Great Depression. One factor would be:

User Account

All Pages