In Economics, the Term "Signaling" Refers to a Way of Lessening

question 50

Multiple Choice

In economics, the term "signaling" refers to a way of lessening the problem of:

• A) free riders.
• B) negative externalities.
• C) bad information by all market participants.
• D) unequal information between buyers and sellers.

---

Definitions:

Reinforcing

The process of increasing the likelihood of a behavior's occurrence by adding or removing a stimulus following the behavior.

Disruptive

Behavior that interrupts or disturbs the normal flow or operation of activities, often seen as undesirable in social and educational contexts.

Animal Subjects

Animals used in research or experiments in order to observe biological, psychological, or social processes that could provide insights relevant to humans or other animals.

Behavioral Laws

Fundamental principles or rules that explain and predict how organisms behave, often based on consequences of actions in terms of rewards and punishments.