An economic signal is a "lemon." some information that people to make better decisions economically. the ability for an owner to choose to do whatever they want with the goods that they own so that they can better themselves off. a measure of how efficient an economy is. which of the scenarios are examples of an economic signal? the market price for toilet paper has not changed over the last 10 years. prices in housing markets fall. companies begin hiring more people after a long period of high unemployment in the united states. purchases of floppy disks and cds decline dramatically as the demand for online streaming of similar goods increases.

Afirm wants to hire a project manager (pm) at a salary of $100,000. 30% of pms have high ability, and 70% of pms have low ability. high ability pms generate $120,000 in revenue and low ability pms generate $80,000 in revenue. in addition to differences in productivity, high and low ability pms have different outside offers. if a high ability pm is not hired by the firm, she can work for another company at a salary of $80,000. if the low ability pm is not hired by the firm, she can work for another company for $70,000. high ability pms are also able to get a project management professional (pmp) certification at a cost of $1,000. low ability pms are unable to get a pmp certification (they would fail the test). the firm is not able to observe a pm’s ability, but is able to observe and verify whether or not the pm has a pmp certificate.(a) draw the extensive form of the game.expert answer