Some companies subject their applicants to extensive tests. Why?
A) to reduce the informational asymmetry between the firm and the applicant
B) to screen the applicant to avoid the problem of adverse selection
C) to gather more information about the applicant
D) All of the above.
D
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The Social Security system is financed by
A) a tax on individual retirement accounts. B) a payroll tax paid only by employers. C) a payroll tax paid by both employers and employees. D) a tax on luxury goods.
Assume that Coca-Cola and Pepsi-Cola are substitutes. A rise in the price of Coca-Cola will have which of the following effects on the market for Pepsi?
a. A movement down along the Pepsi demand curve. b. A rightward shift in the Pepsi demand curve. c. A movement up along the Pepsi demand curve. d. A leftward shift in the Pepsi demand curve.
At a price for which quantity demanded exceeds quantity supplied, a __________ is experienced, which pushes the price __________ toward its equilibrium value
A) surplus; downward B) surplus; upward C) shortage; downward D) shortage; upward
Which of the following is NOT given in the video as an example of a real shock?
A. high inflation B. bad weather C. wars D. changes in the price of oil