
Microeconomics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-1260566642
Microeconomics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-1260566642 Exercise 7
Say whether each of the following situations involves screening or signaling.
a. Auto shops and motels advertise that they are AAA-approved.b. Employers check interviewees' Facebook 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.
a. Auto shops and motels advertise that they are AAA-approved.b. Employers check interviewees' Facebook 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.
Explanation
Screening:
Screening refers to the acti...
Microeconomics 1st Edition by Dean Karlan,Jonathan Morduch
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