If an employer cannot distinguish the ability of workers a separating equilibrium will result
Indicate whether the statement is true or false
False. When an employer cannot distinguish the abilities of the workers, the employer will pay all workers an average wage. This is a pooling equilibrium.
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Individuals will only pursue an activity if: a. E(MB) E(MC)
b. E(MB) = E(MC). c. E(MB) > E(MC). d. E(MB) < E(MC).
In the short run, a monopolistically competitive firm
A. never earns positive economic profits. B. always earns positive accounting profits. C. can earn positive, negative, or zero economic profits. D. always earns positive economic profits.
Populists proved themselves to be strong "quantity theory" activists by
(a) pushing the government to provide a general level of money demand that could be kept abreast of farm output. (b) advancing public education and woman suffrage efforts. (c) trying to prohibit corporate subsidies. (d) seeking to reserve land and other natural resources for farm and conservation use.
Which of the following is NOT a function of the interbank part of the foreign exchange market?
A. Provides clearing services for organizations that prefer to use different currencies B. Provides a bank with a continuous stream of information on conditions in the foreign exchange market C. Permits a bank to take on a position in a foreign currency quickly if the bank and its traders want to speculate on exchange-rate movements in the near future D. Provides a bank the means to readjust its own position quickly and at low cost when it separately conducts a large trade with a customer