Question: For each of the following situations, describe the information asymmetry involved, name the type of action that has been taken to reduce adverse selection (signaling or screening), and explain how adverse selection has been reduced.
a. McDonald's only hires high school students with good grades
b. Hyundai (a Korean auto manufacturer) provides a 100,000-mile warranty on its new cars
c. A health insurance company requires a prospective customer to take a physical examination
d. Budweiser sponsors the Super Bowl half-time show