The cost, c, of a college education that serves only as a signal of a high-quality worker is $10,000. The wage of a known high-quality worker, wh, is $30,000. The wage for a known low-quality worker, wl, is $10,000. For what value of the share of the work force that is of high quality, s, is a pooling equilibrium possible?
A) s > 0.5
B) s = 0
C) s = 0.25
D) s < 0.45
A
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Which of the following macroeconomic variables would you exclude from an index of leading economic indicators?
A) Money supply B) Industrial production C) Inventory investment D) Residential investment
The probability that an employed worker will lose his or her job in the next month is known as
A) the unemployment rate. B) the job finding rate. C) the underemployment rate. D) the job loss rate.
Which of the following best explains an economic criticism of unregulated monopolists?
a. Monopolists do not try to minimize their costs of production. b. Monopolists produce where marginal revenue is greater than marginal costs. c. Monopolists attempt to produce too many products, and as a result, their prices are high, and consumer's waste time trying to choose between too many options. d. Monopolists restrict output, and as a result, they fail to produce units that are valued more than the marginal cost of producing them.
When a firm is operating in a price-taker market, marginal revenue will always equal
a. average total cost. b. one minus the elasticity of the market demand curve. c. total revenue. d. price.