When poor families are compared to nonpoor families of the same ethnic background, significant cultural differences appear. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
Use the following statements to answer this question: I. The effective yield is generally easier to compute for a perpetuity than for a 10-year bond. II. Two perpetuities that have the same annual payment must have the same price, even if the issuers of the bonds are different companies. A) I and II are true. […]
Date: September 9th, 2020
Over the past several decades, low-productivity and high-productivity workers in the US and other countries have tended to invest in their own human capital by completing more years of college than earlier generations. Which of the following reasons does NOT help to explain this trend? A) The cost of education for low-productivity workers has declined […]
Date: September 9th, 2020
The marginal rate of technical substitution is equal to: A) the absolute value of the slope of an isoquant. B) the ratio of the marginal products of the inputs. C) the ratio of the prices of the inputs. D) all of the above E) A and B only ANSWER E
Date: September 9th, 2020
Refer to the information in Scenario 8.1. If Fizzle and Sizzle sell the same output at the same price and are otherwise identical, Fizzle’s profit will be A) higher than Sizzle’s by $500,000 yearly. B) higher than Sizzle’s by just less than $500,000 yearly. C) zero in the long run, and Sizzle will be out […]
Date: September 9th, 2020
In the insurance market, “moral hazard” refers to the problem that A) insurers can’t tell high-risk customers from low-risk customers. B) high-risk customers have an incentive to give false signals to make themselves look like low-risk customers. C) companies may unfairly lump individuals together by race, sex, age or other characteristics in an attempt to […]
Date: September 9th, 2020
Refer to Scenario 10.2. Suppose that in addition to the tax, a business license is required to stay in business. The license costs $1000. What is the profit maximizing level of output? A) 0 B) 90 C) 95 D) 100 E) none of the above ANSWER B
Date: September 9th, 2020
Job market signals like dressing well for interviews are not especially effective because: A) the cost of dressing well is about the same for high-quality and low-quality workers. B) many businesses have adopted casual office attire, so dressing well is not important to the firm. C) federal labor laws prohibit firms from using dress or […]
Date: September 9th, 2020
Consider the Matching Pennies game: Player B – heads Player B – tails Player A – heads 1, -1 -1, 1 Player A – tails -1, 1 1, -1 Suppose Player B always uses a mixed strategy with probability of 3/4 for head and 1/4 for tails. Which of the following strategies for Player A […]
Date: September 9th, 2020
Which of the following is NOT related to the slope of isoquants? A) The fact that inputs have positive marginal product B) The fact that inputs have diminishing marginal product C) The fact that input prices are positive D) The fact that more of either input increases output E) The fact that there are diminishing […]
Date: September 9th, 2020
