Final answer:
The statement is true; applications allow management to obtain detailed information about an applicant's skills and background, which is crucial because of asymmetric information in the labor market.
Step-by-step explanation:
The statement in the question is true. An application provides management with detailed information about an applicant, including their skills, experience, reasons for changing jobs, and attitudes. This process helps to mitigate asymmetric information in the labor market, where employers may rely on educational qualifications, awards, a high grade point average, or references to pre-screen candidates and discern their hard work, perseverance, and ability. These credentials serve as signals of desirable employee attributes due to imperfect information employers face, as they can rarely observe key employee attributes like energy level, work ethic, and detailed-orientation before hiring.