What role does a company like J.D. Power (which provides product satisfaction reviews) serve?
A) It provides a screening test.
B) It provides a signal of quality.
C) It reduces moral hazard.
D) It reduces costs of giving surveys.
Question 2
If the government provides universal health insurance, what screening process will the government need?
A) It won't need a screening test.
B) It will only give health insurance to non-smokers.
C) It won't use screening tests but it will use statistical discrimination.
D) It won't use screening tests but it will use signals.
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