Both signaling and screening:
A. are effective ways to increase information available to both parties.
B. reduce efficiency in the market.
C. benefit the sellers but harm the buyers.
D. benefit the buyers but harm the sellers.
Answer: A
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If short-run equilibrium output equals 20,000 and full employment equals 25,000, then this economy has a(n)
A. employment gap. B. inflationary gap. C. demand gap. D. recessionary gap.
All of the following are characteristics of a battle of the sexes game except
A) each player has a tough strategy and a weak strategy. B) the tough strategy and the weak strategy differ for each player. C) each player prefers the Nash equilibrium corresponding to his or her tough strategy. D) each player prefers the same Nash equilibrium.
Arturo wants to start a business where he is the chief executive officer and the company does issue stock. The type of business Arturo wants to start is a
A) sole proprietorship. B) corporation. C) partnership. D) Any of the above could be correct.
A friend wants to learn how the unemployment rate is calculated and how inflation is measured. He asks you which economics course to take and you advise him to enroll in
A) macroeconomics. B) microeconomics. C) either micro- or macroeconomics. They both concentrate equally on those issues. D) financial accounting because economics doesn't address those topics in its courses.