Employers verify the facts of potential employees' resumes to ...

[a0266361136]

Employers verify the facts of potential employees' resumes to avoid
 
  A) signaling.
  B) screening.
  C) cheap talk.
  D) moral hazard.

Question 2

If diplomas work efficiently in signaling productive capabilities to employers, the resulting equilibrium
 
  A) will be a separating equilibrium.
  B) will be a pooling equilibrium.
  C) will always be inefficient.
  D) will never be efficient.

[mfedorka]

Answer to Question 1

C

Answer to Question 2

A