Refer to Figure 7.1. Suppose the city passes an ordinance banning loud music, and this directly impacts Angus's legal ability to play his bagpipes. The payoffs in the lower-right cell of the payoff matrix would change to
A) 0, 0.
B) 550, 100.
C) 100, 550.
D) The payoffs would not change.
D
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The U.S. economy is experiencing rising output, rising employment, rising incomes and falling unemployment. These conditions best describe a business cycle ________
A) recession B) peak C) trend D) trough E) expansion
Refer to Scenario 17.1. If the threshold educational level y* is set at 7,
A) only individuals in Group A will attain it. B) only individuals in Group B will attain it. C) individuals in both groups will attain it. D) no individuals will attain it. E) some fraction of individuals in each group will attain it.
Window cleaners that work the top floors of high-rise office buildings are, on average, paid approximately 30 percent more an hour than those that clean windows on the bottom floor. This is an example of
a. non-pecuniary job benefits. b. compensating wage differentials. c. irrational wage compensation. d. employment discrimination.
The market produces too little of a good with ______.
a. adverse selection b. negative externalities c. positive externalities d. asymmetric information