An employer that only employs applicants who have college degrees is an example of
A. proofing.
B. moral hazard.
C. mandating that information be shared.
D. screening.
Answer: D
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Assume an economy produces only hamburgers and hotdogs and the base year is 2005. Quantity producedPrices 2005200620052006Hamburgers2,0003,0002$3Hotdogs3,0004,0001$1.50Given the data in the table above, what is the value of nominal GDP in 2006?
A. $15,000 B. $10,500 C. $ 5,000 D. $ 7,000
Government debt "crowds out" private investment because
A) the government and private firms compete in the same market for savings. B) private firms stop borrowing money when the government enters the market. C) the government's increased demand for loans decreases interest rates. D) the government can order the public to buy bonds.
There is virtually no difference between
A. primary reserves and secondary reserves. B. secondary reserves and required reserves. C. required reserves and primary reserves.
Which of the following statements is TRUE about the difference between the public debt and the government budget deficit?
A. The public debt for this year will increase or decrease depending upon whether there is a government budget deficit or a government budget surplus. B. The public debt always increases while the government budget deficit may increase or decrease. C. There is no relationship between the public debt and the government budget deficit since one is a stock measure and the other is a flow measure. D. The public debt is a flow measure and the government budget deficit is not a flow measure.