According to the signaling theory of education, better-educated workers
a. are likely to be high-ability workers.
b. improve their marginal productivity through education.
c. are in scarce supply in less developed countries.
d. can only find low-skilled jobs due to technology.
a
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How does the idea of efficient markets influence the long-run market adjustment mechanism?
What will be an ideal response?
Consider a wine maker who has put her wine in bottles. The question is whether to store the wine for a marginal cost of $1 per year or to sell the wine today at a price of $10
If the interest rate is 6%, how much must the price of the wine increase in the next year to justify storing it? A) $1.66 B) $1.27 C) $0.72 D) $0.45
In the long run, an increase in aggregate demand causes the price level to _______ and the long-run aggregate supply curve to _____________
a. decrease; decrease b. increase; increase c. decrease; remain unchanged d. increase; remain unchanged
Who does not gain when a tariff is imposed?
A. Domestic producers of the good. B. Domestic workers in the protected industry. C. Domestic consumers of the good. D. Domestic suppliers in the protected industry.