# Which of the following must be true about a signal that is used to reveal private information in order for the signal to be effective ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: Which of the following must be true about a signal that is used to reveal private information in order for the signal to be effective ? Correct Answer: C. It must be costly to the signaling party but less costly to the party with higher-quality product. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# Which of the following must be true about a signal that is used to reveal private information in order for the signal to be effective ?

Direct Answer & Quick Reference

The correct option is **C. It must be costly to the signaling party but less costly to the party with higher-quality product**.

A. It must be “as seen on TV”

B. It must be free to the signaling party

C. It must be costly to the signaling party but less costly to the party with higher-quality product **(Correct Answer)**

D. It must be applied to an inexpensive product

✨ Explain with AI

Verified Key: C. It must be costly to the signaling party but less costly to the party with higher-quality product
Solved by 4,168+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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*Source: https://test-prep.blog/mcq/which-of-the-following-must-be-true-about-a-signal-that-is-used-to-reveal-privat-e052e4c5-1b99-4216-8247-1a3f4a766891*
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