Recall the Application about the free-agent market for professional baseball pitchers to answer the following question(s).Recall the Application. Why is there adverse selection in the baseball pitcher free-agent market?
What will be an ideal response?
The pitchers' old team knows more about the pitcher than the new team does. The old team chooses to re-sign the healthier pitchers and let the less healthy ones go to the new team.
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Which of the following lists gives factors that increase labor productivity?
A) expansion of human capital, labor force increases, and discovery of new technologies B) expansion of human capital, population growth, and discovery of new technologies C) saving and investment in physical capital, and wage increases D) labor force increases and wage increases E) saving and investment in physical capital, expansion of human capital, and discovery of new technologies
The above figure shows the costs at Barney's Bagel Bakery. As the amount of output increases, the AVC curve approaches the ATC curve because the
A) TFC curve (not shown) slopes down. B) AFC curve (not shown) slopes down. C) MC curve is rising. D) AVC curve is rising.
The best example of a durable good is
a. food b. clothing c. tobacco d. gasoline e. an automobile
Which of the following describe(s) how corporations acquire funds for investment?
a. By lending out money for student loans or home mortgage loans. b. By issuing shares and retaining part of their profit. c. By paying dividends to stockholders. d. By paying taxes to the government.