Nicole wants to prevent purchasing a defective car. Before making the purchase, she has a mechanic inspect the vehicle. What is this process called?

Explanation

Screening occurs when the buyer takes steps, such as having a mechanic check a car, to gather information and avoid purchasing a faulty product. Signaling involves the seller providing information to the buyer. Moral hazard refers to changes in behavior after a transaction. Adverse selection happens when one party has more information than the other, leading to poor choices.