Principles of Microeconomics / Unit 15 MIC 1403 short lesson, about 20 seconds
Bridging the Gap
Captions available
The idea
Sellers bridge information gaps with reputation, guarantees, warranties and service contracts. Employers screen with degrees and references and read signals such as grades; licenses and probation do the same. Lenders use credit checks, cosigners and collateral.
In practice
A warranty is a seller betting its own money on quality.
Where people slip
A license certifies quality and bars entry at once; the course states both edges.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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