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An Employer Faces the Problem of Adverse Selection While Recruiting

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An employer faces the problem of adverse selection while recruiting an employee for a job that requires intangible or immeasurable abilities.


Definitions:

Social Comparisons

The process of evaluating one's abilities, attitudes, and internal states in relation to others.

Social Perspective

The viewpoint focusing on how societal norms, cultures, and interactions shape individual behaviors and attitudes.

Sense

refers to any of the faculties by which stimuli from outside or inside the body are received and felt, such as sight, hearing, smell, taste, or touch.

Differentiated Sense

refers to a heightened or refined ability to perceive nuances in stimuli or environments, distinguishing subtle differences.

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