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In: Economics

Which of the following is an example of signaling? a. Pat is considering the purchase of...

Which of the following is an example of signaling?

a. Pat is considering the purchase of a used car. Before making the purchase he has the car checked by an auto mechanic.

b. Zach is applying for a new life insurance policy. Before writing the policy, the insurance company requires Zach to be examined by a doctor.

c. Denise is applying for a new job. Before hiring her, the firm requires Denise to take a drug test.

d. Marcus is planning to ask for Chaquila's hand in marriage. Before asking her, he buys her a box of her favorite chocolates and takes her to dinner at her favorite restaurant.

Solutions

Expert Solution

Ans) the correct option is d) Marcus is planning to ask for Chaquila's hand in marriage. Before asking her, he buys her a box of her favorite chocolates and takes her to dinner at her favorite restaurant.

Rahul Sunny answered 2 years ago
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