We reject the null hypothesis of no effect if the p-value is typically
A. ? 1.
B. ? 0.05.
C. ? 0.5.
D. ? 0.10.
Answer: B
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Which is NOT an example of moral hazard
a. people eat more at all-you-can-eat buffets b. loggers clear-cut a tract of land when paying a fixed fee rather than when paying per tree felled c. Drivers of heavier, safer cares are more likely to run stop signs d. workers paid an hourly wage work harder than those on commission
One reason that an efficiency wage leads to greater worker productivity is that:
A. earning more than the market wage gives workers an incentive to stay with the firm. B. it deters workers from trying to start a union. C. due to competition for their jobs, which are now desired, firms to pay less overall for a worker in the long run. D. it is set right at market equilibrium which creates an efficient labor market.
Assume there is a price ceiling imposed on a good which is below the equilibrium price. Which of the following changes would reduce the size of the shortage?
a. an increase in demand b. a decrease in demand c. a decrease in supply d. a lower price ceiling
A theory is an explanation of the causal mechanism behind observed phenomena
a. True b. False Indicate whether the statement is true or false