Which of the following job market signals are less costly for high-quality workers to send than low-quality workers? A) Spending long hours at the office B) Sending emails to coworkers and supervisors at night and on weekends C) Leaving voice-mail message for colleagues before or after regular business hours D) all of the above […]
Scenario 4.5 indicates that grilled cheese sandwiches and hamburgers are: A) substitutes. B) complements. C) independent goods. D) none of the above ANSWER A
Refer to Scenario 10.2. Suppose that a tax of $5 for each unit produced is imposed by state government. How much profit does the monopolist earn? A) $4050 B) $4950 C) $450 D) $5 ANSWER A
If the isoquants are straight lines, then A) inputs have fixed costs at all use rates. B) the marginal rate of technical substitution of inputs is constant. C) only one combination of inputs is possible. D) there are constant returns to scale. ANSWER B
If the payment stream of a bond remains the same and the price of the bond goes down, the A) effective yield is unchanged. B) effective yield rises. C) effective yield decreases. D) bond is reissued to reflect the higher interest rate. E) bond is reissued to reflect the lower interest rate. ANSWER B […]
William Julius Wilson ascribes “underclass” behavior to a distinct culture of poverty. Indicate whether the statement is true or false ANSWER F
See Scenario 4.5. As the price of grilled cheese sandwiches decreases, the price elasticity of demand: A) increases. B) does not change. C) decreases. D) none of the above ANSWER B
When the price faced by a competitive firm was $5, the firm produced nothing in the short run. However, when the price rose to $10, the firm produced 100 tons of output. From this we can infer that A) the firm’s marginal cost curve must be flat. B) the firm’s marginal costs of production never […]
There were more poor people in America in 2005 than there were in 1965. Indicate whether the statement is true or false ANSWER T
The process by which sellers send signals to buyers conveying information about product quality is known as: A) asymmetric information. B) market signaling. C) a lemons problem. D) moral hazard. ANSWER B
