A Signalling Equilibrium Occurs Where

question 19

Multiple Choice

A signalling equilibrium occurs where:

• A)the cost of obtaining the signal is the same for both high and low risk drivers.
• B)the cost of obtaining the signal is low for high risk drivers and high for low risk drivers.
• C)the cost of obtaining the signal is high for high risk drivers and low for low risk drivers.
• D)the cost of the signal is not too high for either type of driver.

---

Definitions:

Short-Term Memory

The capacity for holding a small amount of information in an active, readily available state for a short period of time.

Working Memory

The part of short-term memory that is concerned with immediate conscious perceptual and linguistic processing.

Long-Term Memory

The ability to store information for extended periods, often throughout an individual's life, distinguished from short-term or working memory.

Procedural Memory

A type of long-term memory involved in the acquisition of motor skills and habits, responsible for knowing "how" to do things.