Cheap talk works at placing workers in the right job as long as
A) the interests of the worker and the firm coincide.
B) all workers want the most demanding jobs regardless of their abilities.
C) workers have different ability levels that are unknown to firms.
D) firms are not profit maximizers.
Question 2
Screening and signaling in the labor market are inefficient
A) unless college costs are relatively low.
B) unless they result in a better job match.
C) because the benefits are spread out over many firms.
D) because they raise the wage paid to all workers.
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