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please answer thoroughly. justify answer. Problem 3: True/False/Uncertain (10 pts) State whether each of the sentences below is true, false, or uncertain based on the
please answer thoroughly. justify answer.
Problem 3: True/False/Uncertain (10 pts) State whether each of the sentences below is true, false, or uncertain based on the concepts discussed in class. Most importantly, justify vour explanation. a. In the hiring context, there is often asymmetric information, in which the worker knows more about her productivity than the manager does. This can lead to adverse selection, where most of the candidates for a job do not meet the manager's qualifications. (2 pts) b. An example of screening is when a worker chooses to get a master's degree because it reveals that he is high-ability. (2 pts) c. All else equal, when it takes a long time to determine a worker's productivity, firms are less likely to hire risky over safe workers. (2 pts) d. All employers benefit from screening. (2 pts) e. Noncompete agreements are especially useful in environments with high turnover. (2 pts)Step by Step Solution
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