Costly Signaling Refers to __________

question 38

Multiple Choice

Costly signaling refers to __________.

• A) signals to potential social allies that you are a costly partner because you require a greater than average amount of reciprocation
• B) an incapability of investment because the costs you incur exceed the benefits you are capable of bestowing
• C) altruism that is not costly but yields a signal to others that he or she is willing to invest
• D) altruism that is costly to the provider and thereby yields honest signals to others regarding one's quality as a coalitional ally

---

Definitions:

Average Rate

The mean rate calculated over a period or series of events, often used in finance to describe average interest or return rates.

Return

The profit or loss derived from an investment over a particular period, usually expressed as a percentage.

Investment

Putting money into channels with the expectation of financial growth or profit generation.

Equipment

Tangible assets used in the operation or production process of a business, such as machinery, computers, and tools.