Suppose that an economics department is offering a student exchange program with a university in Giessen, Germany. If the department requires students to submit an essay in order to be considered for the program, the essay may be an example of
a. signaling.
b. screening.
c. monitoring.
d. principal.
b
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Taxes that change with the level of real GDP and income are called
A) flexible taxes. B) voluntary taxes. C) induced taxes. D) forced taxes. E) GDP taxes.
Which two goods will most likely have indifference curves that are straight lines?
A) blue and red balloons B) left and right shoes C) pizza and hair spray D) beef and chicken
Mr. McConaughey has the afternoon, 5 hours, to spend doing whatever he wants. How much time does Mr. McConaughey spend with his friends and family and how much time does he spend breaking a sweat to maximize his total utility?
A) 3 hours with friends and family and 2 hours breaking a sweat B) 2 hours with friends and family and 3 hours breaking a sweat C) 0 hours with friends and family and 5 hours breaking a sweat D) 3 hours with friends and family and 4 hours breaking a sweat
Answer the following statements true (T) or false (F)
1. A decrease in the prices of computer chips for PCs will increase the supply of PCs. 2. The development of a new production technique that lowers the cost of producing 3-D movies will shift the supply curve of 3-D movies to the right. 3. A surplus indicates that the quantity demanded is greater than the quantity supplied at that price. 4. If we observe the price of a good in a competitive market rising, then we can conclude that there had been a shortage in the market.