Which of the following is an example of a signal that is used to reveal private information ?
Correct answer: D. All of these answers are correct
- A. Enzo carefully chooses a special gift for Josephine
- B. Josephine earns her MBA from the Harvard Business School
- C. Lexus advertises its cars during the football World Cup Final.
- D. All of these answers are correct
Explanation
A Harvard MBA can signal ability, advertising can signal product quality, and a carefully chosen gift can reveal information about the giver's preferences. Since each can convey otherwise private information, all of these answers are correct.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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