Even though conspicuous consumption can serve as a credible signal of ability, it can lead to socially inefficient outcomes because:
A. earnings and ability are very poorly correlated.
B. conspicuous consumption is not highly correlated with earnings.
C. conspicuous consumption can lead to positional arms races.
D. conspicuous consumption has been demonstrated to be poorly correlated with ability.
Answer: C
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If the price received by a perfectly competitive firm is less than its average variable cost, what will the firm do in the short run? Why?
What will be an ideal response?
Which one of the following people is not a member of the labor force?
a. A full-time student who devotes all her time to her classes. b. A person who works 30 hours a week at Burger King and goes to school at night. c. The man who was fired last week and is searching for a new job. d. The President of the United States. e. A professional athlete.
Research associates obesity with a higher risk of all the following conditions except:
a. depression. b. type 1 diabetes. c. stroke. d. cancer. e. cardiovascular disease.
The concept of ____________________is based on voluntary decisions made by producers.
Fill in the blank(s) with the appropriate word(s).