Question

Gata just graduated from college and is currently on the job market. During his interviews, he claims to know 16 programming languages despite having never taken a computer science class. Three hours into his first day of work, his new firm realizes that he may have exaggerated his credentials. This is a good example of

Group of answer choices

Adverse selection

Shared value creation

Corporate governance

Moral hazard

Answer 1

The correct option is A.

This is a good example of Adverse Selection.

Adverse selection is a situation in which the hiring company doesn't know the complete details of a hired employee.

Thanks.

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