Question 1 A job candidate refusing to take a drug test for a potential employer is an example of:signaling.screening.building a...

Question 1

1. A job candidate refusing to take a drug test for a potential employer is an example of:
2. A.signaling.
3. B.screening.
4. C.building a reputation.
5. D.principles-based behavior.

12 points  

QUESTION 2

1. The result of employers observing negative signals from job candidates during a job search:
2. A.will likely cause the employer to choose a better candidate than without the signals.
3. B.will lead to a hire based on more information than before the signals were given.
4. C.will lead to a more efficient outcome.
5. D.All of these statements are true.

12 points  

QUESTION 3

1. An approach that can be taken by someone directly involved in a transaction to solve the problems caused by information asymmetry is:
2. A.statistical discrimination.
3. B.mandating that information be shared.
4. C.proofing.
5. D.All of these are ways to solve information asymmetry.

12 points  

QUESTION 4

1. The used car market is:
2. A.used to describe the "lemons" problem.
3. B.a perfect example of what happens when there is an imbalance of information present in a market.
4. C.subject to the problem of adverse selection.
5. D.All of these statements are true.

12 points  

QUESTION 5

1. Reading a Consumer Reports review of a vacuum cleaner before buying is the same way of dealing with information asymmetry as:
2. A.a certification of a used car from a brand dealership.
3. B.an employer requiring a drug test.
4. C.an insurance company offering different deductible-level plans.
5. D.a college charging a high tuition relative to other schools.

12 points  

QUESTION 6

1. Both screening and signaling:
2. A.are ways to decrease information asymmetry between two parties.
3. B.correct inefficiency in the market.
4. C.can increase surplus gained in a market.
5. D.All of these statements are true.

12 points  

QUESTION 7

1. All food bought in the United States has an ingredient list on the packaging. This is an example of:
2. A.screening.
3. B.signaling.
4. C.requiring the more informed party to reveal missing information.
5. D.building a reputation.

12 points  

QUESTION 8

1. Taking action to reveal one's own private information is called:
2. A.screening.
3. B.signaling.
4. C.statistical discrimination.
5. D.proofing.

12 points  

QUESTION 9

1. People:
2. A.rarely have access to complete information.
3. B.always have access to complete information.
4. C.never have access to complete information.
5. D.often have access to complete information.

12 points  

QUESTION 10

1. When information asymmetry exists in a market, government:
2. A.always steps in to try to correct it.
3. B.never steps in to try to correct it.
4. C.sometimes steps in to try to correct it.
5. D.only steps in to correct it if it can ensure complete information.

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