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

question 3

Multiple Choice

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

• A) the signal is as costly to good workers as to bad workers.
• B) bad workers are more risk-averse 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:

Nirvana

A state of perfect peace and happiness, often seen as the ultimate goal in some Eastern religions.

Enhance Life

Actions or practices aimed at improving the quality, enjoyment, or value of one's life experience.

Despair

A feeling of utter hopelessness and defeat.