A "Signal" Will Not Work to Sort Good from Bad

question 32

Multiple Choice

A "signal" will not work to sort good from bad workers if

• A) the signal is as costly to good and bad workers.
• B) bad workers are more risk-adverse than good workers.
• C) the signal is excessively expensive to bad workers.
• D) good workers are more productive than bad workers.

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Definitions:

Riding Time

Time spent in control in wrestling, earning an advantage; in broader use, it could refer to time spent commuting or traveling by horseback, though this would be less common.

Bicycling Route

A designated path or trail either specifically allocated for or commonly used by cyclists.

Total Expenses

The total sum of all costs incurred by a person or organization within a given period.

December Expenses

The total amount of money spent during the month of December for various purposes such as rent, utilities, payroll, and supplies.