QUESTION 8 Rio and Mei are both applying for a job with PWCQ. Both are very intelligent and are more than capable of doing the job. However, Rio has an honours degree from the University of Queensland and Mei has an online degree from a small, relatively unknown university. Select the item from the list provided to make the following statements true. Rio's UQ degree communicates that she is an intelligent, 1. Adverse selection capable future employee. This is an example of 2. 20% 3. Asymmetric information 4. Marginal benefit As an employer, PWCQ must rely on such signals as a 5. Principal-agent problem result of 6. Expected value The managers of PWCQ decide to refurbish their offices 7. 80% even though this costs the company a considerable 8. Costly to fake principle amount of money. This is an instance of 9. More time looking 10. Moral hazard 11. Marginal cost 12. Less time looking