Effective Signals

question 270

Multiple Choice

Effective signals

• A) convey useful information from informed parties to uninformed parties.
• B) impose little or no cost on the signaler.
• C) cannot be conveyed accurately when there is an information asymmetry.
• D) can be used by employers to alleviate the moral hazard problem in the workplace.

---

Definitions:

Effective Communication

The successful exchange of information between individuals or groups that results in the intended understanding or action.

Direct Approach

A communication strategy that involves straightforward and clear delivery of messages without indirect hints or ambiguity.

Negative News

Information or updates that are unfavorable, disappointing, or adverse, often requiring careful communication.

Emotional Investment

The degree of emotional commitment or involvement one has in an object, idea, or activity.