Chapter EMC, Problem 3MCQ

To determine

To state: The name of the strategy, when the colleges use grade point averages to make admissions decisions.

Answer to Problem 3MCQ

The correct option is B i.e Screening

Explanation of Solution

So, the correct option is B i.e Screening.

The colleges use grade point averages to make admissions decisions i.e they screen out from a large number of students the ones that are capable of their college. This strategy is known as screening i.e finding the best out of a group.

The definition of screening suggests using noticeable information about people to make conclusions about their private information.

Economics Concept Introduction

Introduction:

Screening: Adverse selection can be condensed through screening: using noticeable information about people to make conclusions about their private information.