Suppose that a new type of artificial nails are invented that do not break and are easier to take off your fingernails. Below is a table showing the supply and demand conditions for workers who can apply these nails?

The advantage of administering personality tests on employees is that it will allow the employer to know the mindset and personality of the employee. this will allow the employer to at least have an idea as to how the employee works and how his attitude in the workplace. the disadvantage is that it may make the employee a little anxious as to whether he would meet the personality requirements of the employer and whether he would be able to retain the job or not. 

Answer(d); /// in the absence of transaction costs,private parties can solve the problem of externalities on their own;