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.

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Definitions:

Unitised

Refers to the conversion of a product or service into quantifiable units, typically for ease of calculation, tracking, or comparison.

Special Decisions

Decisions made in unique or non-recurring situations requiring specific analysis or responses.

Annual Operating Costs

The total expenses associated with the day-to-day functioning of a business or project over one year.

Useful Life

The estimated period over which an asset is expected to be usable for the purpose it was acquired, used for depreciation calculations.