In what way do signaling and screening differ in their approach to resolving information asymmetry?

• A. Signaling is initiated by the informed party, while screening is initiated by the uninformed party.
• B. Both signaling and screening are initiated by the uninformed party.
• C. Screening is less effective than signaling in all scenarios.
• D. Signaling is more costly than screening for the informed party.

Answer: (A)