Both Signaling and Screening

question 129

Multiple Choice

Both signaling and screening:

• A)reduce efficiency in the market.
• B)are effective ways to increase information available to both parties.
• C)benefit sellers but harm buyers.
• D)benefit buyers but harm sellers.

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Definitions:

Condensation

Chemical reaction in which a large molecule is assembled from smaller sub-units; water also forms.

Polymers

Large molecules composed of many repeated subunits, which can be found in various natural and synthetic materials like plastics, proteins, and DNA.

Monomers

Simple molecules that can join together to form polymers, which are large, complex structures.

Unsaturated

A term describing molecules, particularly fats or fatty acids, which contain one or more double bonds between carbon atoms, making them less hydrogenated.