Costly signaling, such as education or name brand advertising, does not actually increase the quality of the worker or product, but rather makes the signal more credible.

a. False, costly signaling increases quality and credibility

b. False, education is not a signal of credibility, but a premium to ensure quality

c. True, costly signaling increases credibility when two parties interests do not align

d. True, this is the best method for making choices when there is uncertainty