Which of the Following Is an Example of Signaling

question 13

Multiple Choice

Which of the following is an example of signaling?

• A) A buyer who makes a large raise in bid at an auction to discourage other bidders.
• B) A doctor who performs a large number of in-office tests and is paid per test.
• C) An elderly couple who elect a generous medical insurance policy.
• D) A board of directors that is trying to refine the compensation system for its CEO.
• E) A pitcher (about to sign with a new team) who is aware of a nagging elbow pain.

---

Definitions:

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods.

Mental Health Care

The provision of services and support to individuals dealing with psychological, emotional, or behavioral issues.

Utilization Review

The process of evaluating the necessity, appropriateness, and efficiency of the use of healthcare services, procedures, and facilities.

Outpatient Care

Medical treatment provided that does not require an overnight stay in a hospital or medical facility.