In order for education to be effective as a signal of worker productivity it must be
A. easy for everyone to get a college degree.
B. costly for less productive workers to imitate.
C. that the employee has taken classes in economics.
D. none of the above make education an effective signal.
B. costly for less productive workers to imitate.
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In the Keynesian model in the short run, a decrease in government purchases causes output to ________ and the real interest rate to ________
A) fall; rise B) fall; fall C) rise; rise D) rise; fall
Which of the following is the best example of a public good?
a. Cars. b. Education. c. Radios. d. Air traffic control.
Suppose Johnson's Rubber Factory belches black smoke into the air over the city of Bellowsville. If the city of Bellowsville attempts to internalize the external costs associated with the production of rubber with a pollution tax, we can expect:
A. the price of rubber not to change. B. the price of rubber to increase. C. the quantity of rubber demanded to increase. D. no change in the quantity of rubber demanded.
Both the new classical and new Keynesian models had in common the belief that
A) in the medium run, output returns to its natural level. B) output is always at its natural level. C) in the short run, output would likely deviate from its natural level. D) none of the above