Author Question: Market signals are (Read 23 times)

lilldybug07 · **on:** Apr 19, 2019

Question 1

In the area of market signaling, education is a strong signal in the job market because

◦ it tells employers that you have gained skills that will be useful in the work place.
◦ education is costly to obtain.
◦ education is less costly to obtain for highly productive individuals who are also likely to be highly productive in the work place.
◦ firms can easily verify your level of education.

Question 2

Market signals are

◦ actions taken by buyers and sellers to communicate quality in the presence of perfect information.
◦ only strong if obtaining the signal is more costly for individuals with valued traits than for those with non-valued traits.
◦ used to differentiate those who will drive equally carefully whether or not they have auto insurance from those who drive less carefully when they have insurance.
◦ used to distinguish between high and low quality and help correct the adverse selection problem.

juiceman1987 · **Reply #1 on:** Apr 19, 2019

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 64% of students answer this correctly