Demand in the refreshment beverage market has been changing due to A) changes in income. B) changes in taxes and subsidies. C) changes in the number of buyers. D) changes in tastes and preferences. ANSWER D
Date: September 9th, 2020
Suppose 10% of all workers are of high ability. If a firm knows a worker’s ability, workers of low ability are paid $20,000 and workers of high ability are paid $30,000. A college degree can signal ability, and the cost of the degree is $11,000. Will there be a pooling equilibrium or a separating equilibrium? […]
Date: September 9th, 2020
The demand for organically grown food is A) increasing. B) decreasing. C) stagnant. D) unpredictable. ANSWER A
Date: September 9th, 2020
If low-quality workers are unable to obtain a college degree, then a separating equilibrium can occur if A) the cost of obtaining a degree is less than the wage premium paid to those who have obtained the degree. B) the cost of obtaining a degree is greater than the wage premium paid to those who […]
Date: September 9th, 2020
“Localvores” refers to food products which are A) organically produced. B) imported from foreign countries. C) grown in places which are close to the point of consumption. D) provide health and nutritional benefits in combating diseases. ANSWER C
Date: September 9th, 2020
The delay between when a problem is recognized and when policy action is taken is referred to as the A) recognition lag. B) action lag. C) effectiveness lag. D) policy lag. ANSWER B
Date: September 9th, 2020
The demand for U.S. produced packaged food products in foreign countries is expected to A) grow. B) slow down. C) remain constant. D) fluctuate. ANSWER A
Date: September 9th, 2020
When relatively few workers have high ability, A) they will settle for the average wage. B) they will want to signal their ability. C) the premium for high ability is less than when most workers have high ability. D) they do not need to signal their ability. ANSWER B
Date: September 9th, 2020
The delay between when a policy action is taken and when they affect the economy is referred to as the A) impact lag. B) action lag. C) recognition lag. D) policy lag. ANSWER A
Date: September 9th, 2020
If a college degree is used to signal high ability, but the cost of a college degree is relatively high, A) a separating equilibrium is achieved. B) a pooling equilibrium is achieved. C) even low-ability workers will attend college. D) the share of high-ability workers must be 1. ANSWER B
Date: September 9th, 2020
