The key to a successful positive signal is that:
A. it is hidden information.
B. it builds trust between the principal and the agent.
C. it is costly to fake.
D. All of these statements are true.
Answer: C
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Which of the following statements is correct?
A) Arc elasticity of demand is the same as the slope of the demand curve. B) Arc elasticity of demand only applies to a nonlinear demand curve. C) Point elasticity of demand is measured at each point along a demand curve. D) Point elasticity of demand is measured between two adjacent points on a demand curve.
A striking conclusion of the Solow model is that in the absence of productivity growth, in the long run
A) the economy reaches a steady state. B) consumption per worker equals the capital stock per worker. C) consumption per worker equals output per worker. D) consumption per worker equals investment per worker.
The side of the market that is more inelastic:
A. will bear more of the tax burden. B. will bear less of the tax burden. C. will share an equal amount of the tax burden. D. determines whether to shoulder the majority of the tax burden or pass it on.
Most economists believe that the infant industry argument for protection, though theoretically justified, often keeps firms from becoming more competitive.
Answer the following statement true (T) or false (F)