An employer asking potential job candidates to perform a test is an example of:
A. screening.
B. signaling.
C. statistical discrimination.
D. building a reputation.
A. screening.
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Which of the following is key for the Coase Theorem to reach an optimal solution to an externality?
A. Clearly defined property rights B. Both parties having property rights C. No property rights D. A single party with property rights
Which of the following is an allowable deduction?
A. Unreimbursed medical expenses that exceed 7.5% of AGI B. State and local income and property taxes C. Interest on qualified education loans up to a certain limit D. All of the answer options are correct.
Suppose the short-run production function is q = L0.5. If the marginal cost of producing the tenth unit is $5, what is the wage per unit of labor?
A) $1 B) $0.5 C) $0.25 D) It cannot be determined without more information.
Which of the following will cause an increase in aggregate demand?
a. Relative price increase of U.S. goods b. Relative price decrease of U.S. goods c. Increase in taxes d. Decrease in income