Economics Chapter 10 2 Taking Action Reveal Ones Own Private

77. Taking action to reveal one’s own private information is called:

78. Signaling is when someone takes action to:

79. The private information revealed during screening typically refers to information:

80. An example of screening during the hiring process is:

81. Requiring that applicants get drug tested is an example of:

82. Agreeing to take a drug test offered by a potential employer is a method of:

83. An employer asking potential employees to interview with them is an example of:

84. An employer asking for a list of references from a potential employee is an example of:

85. An employer asking potential job candidates to perform a test is an example of:

86. A college requesting applicants to submit their high school transcripts is an example of:

87. A landlord requiring potential tenants to provide a rental history is an example of:

88. When buying a used car from a dealer, showing up in cheap clothing and ungroomed is an example

of:

89. An insurance company offering both high-deductible and low-deductible plans is an example of:

90. An insurance company offering discounts to students with high grades in school an example of:

91. An insurance company offering a high-deductible plan is an example of:

92. A job candidate refusing to take a drug test for a potential employer is an example of:

93. When trying out for the football team, the coach may have candidates run a lap around the track. This

is an example of:

94. A high school student who voluntarily includes a writing sample with their college application is an

example of:

95. A motorist who chooses high-deductible versus low-deductible car insurance is signaling that he is:

96. Completing a college degree signals to employers that you are:

97. One reason dressing well for a job interview may not be an effective signal is

98. The key to a successful positive signal is that:

99. Wearing a suit to a job interview is an example of a:

100. Showing up to a job interview and not knowing any information about the company is an example of

101. Certifying a used car through a brand dealership is one way to:

102. Hiring a sports celebrity to advertise a car dealership is a way of:

103. What method is often used when both parties want to eliminate information asymmetry?

104. Both screening and signaling:

105. Both screening and signaling:

106. Both signaling and screening:

107. The result of effective screening and signaling can be:

108. Job candidates during a job search will seek to provide employers with ______ but avoid providing

_____:

109. What’s the opportunity cost of taking an unfair advantage in a deal?

110. When a transaction takes place repeatedly, then one way to signal to avoid information asymmetry

is:

111. User-feedback scores on eBay are an example of:

10–23

112. User reviews of products on store websites that reassure buyers of the quality is an example of:

113. Consumer Reports’ reviews of products:

114. Reading a Consumer Reports review of a vacuum cleaner before buying is the same way of dealing

with information asymmetry as:

115. Building a good reputation:

116. Building a good reputation in the marketplace:

117. Having a well-known brand name associated with high quality is

118. Filling gaps in your information by generalizing based on observable characteristics is called:

119. Statistical discrimination is when you take action to:

120. Statistical discrimination using gender and age:

121. An example of statistical discrimination would be:

122. Generalizing using statistical discrimination is:

123. Statistical discrimination is not always:

124. Statistical discrimination:

125. Statistical discrimination:

126. When information asymmetry exists in a market, government:

127. The government can help solve the information asymmetry problem by:

128. The government can help solve the information asymmetry problem by:

129. The government can help solve the information asymmetry problem by:

130. All food bought in the United States has an ingredient list on the packaging. This is an example of:

131. The nutritional information now available at many fast food restaurants is an example of:

132. Disclosure laws:

133. Disclosure laws:

134. In the early 2000s, laws requiring banks and mortgage brokers to disclose the terms of home loans:

135. In the early 2000s, the government passed laws requiring banks and mortgage brokers to disclose

the terms of home loans. This action by the government was an attempt to:

136. When government mandates participation in a program to solve an information asymmetry problem,

it is trying to prevent:

137. Governments can use public regulation to help solve information problems by:

138. Government mandating that every driver have a minimum amount of car insurance addresses the

problem of:

139. Governments choose to mandate participation in a program, like auto insurance, when:

140. One effect of government mandating participation in the auto insurance market is it leads to:

141. Some policy makers have suggested that mandatory health insurance coverage would:

10–29

Chapter 10 Test Bank Summary