Both signaling and screening:
A. reduce efficiency in the market.
B. are effective ways to increase information available to both parties.
C. benefit the sellers but harm the buyers.
D. benefit the buyers but harm the sellers.
B. are effective ways to increase information available to both parties.
You might also like to view...
Which of the following statements is true?
A) It is possible for an economy to change its economic institutions but not its political institutions. B) Neither the political institutions not the economic institutions of a nation can be changed. C) It is possible for an economy to change its political institutions but not its economic institutions. D) It is possible for an economy to change both its political and economic institutions.
The desired reserve ratio is 10 percent. Joe deposits $1,000 in Bank A. Bank A keeps its minimum desired reserves and lends the excess to Fred
Fred spends his loan at J.C. Penney. J.C. Penney deposits the check it receives from Fred in Bank B. Bank B keeps its minimum desired reserves and lends the excess to Mary. How much can Bank B lend to Mary? A) $90 B) $900 C) $810 D) $1,000 E) $100