Asked by Nazwa Al-Sayeed on Jun 11, 2024
Verified
People faced with adverse selection use _____ to deal with it.
A) screening
B) signals
C) reputation
D) screening,signals,and reputation
Screening
The process of evaluating or examining something to ascertain its condition or identify the presence of something.
Signals
Actions or indicators that convey information or intentions in various contexts, such as economics, where they can indicate future behavior or trends.
Reputation
A long-term standing in the public regard that serves to reassure others that private information is not being concealed; a valuable asset in the face of adverse selection.
- Recognize methods employed to counteract the impacts of adverse selection and moral hazard.
Verified Answer
Learning Objectives
- Recognize methods employed to counteract the impacts of adverse selection and moral hazard.
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