________ Is (Are) Used to Distinguish Between High and Low

question 96

Multiple Choice

________ is (are) used to distinguish between high and low quality and help correct the adverse selection problem.

• A) Asymmetric information
• B) Payoffs
• C) Moral hazard
• D) Market signals

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Definitions:

Entrepreneurial Ability

The skill to innovate, take risks, and efficiently allocate resources to create and manage a business.

Human Capital

A form of intangible capital that includes the skills and other knowledge that workers have or acquire through education and training and that yields valuable services to a firm over time.

Labor Productivity

The measure of economic output per unit of labor input, often used to gauge the efficiency of a workforce.

Savings Rate

The proportion of disposable income that is saved rather than spent on consumption.