What is the main selection issue researchers must address when trying to estimate the effectiveness of government training programs?
A. Government training programs are usually geared toward developing general skills rather than providing specific job training.
B. Evaluation schemes tend to lose track of participants once they start a new job after the training.
C. Most government training programs are only offered to the unemployed and not to workers who would like to switch jobs.
D. The true cost of government training programs is unknown because unemployed workers also receive welfare benefits.
E. The most motivated unemployed workers are the ones who are also most likely to take advantage of government training programs.
Answer: E
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The supply of loanable funds is from
A) firms and the government if it has a budget deficit. B) households and the government if it has a budget deficit. C) firms and the government if it has a budget surplus. D) households and the government if it has a budget surplus. E) households and firms.
Sergio's rentals of Blu-ray movies increase by 10 percent when her income increases by 30 percent. Based on this information, we know that for Sergio, Blu-ray movies
A) are complements. B) are substitutes. C) are inferior goods. D) have an inelastic demand. E) are normal goods.
Consider a perfectly competitive market experiencing good times. In the short run, the equilibrium price will ________ and firms will earn a(n) ________
A) increase; economic profit as the new price exceeds average total cost B) increase; normal profit as the new price exceeds average total cost C) decrease; economic loss as new firms enter the industry D) decrease; economic profit as firms exit the industry E) may increase or decrease; normal profit depending on their costs
Which of the following changes to the market in the graph shown could cause the price floor to become non-binding?
A. Demand could decrease, and shift to the left.
B. Supply could increase, and shift to the left.
C. Supply could increase, and shift to the right.
D. Supply could decrease, and shift to the left.