James earns a degree from a top university and is hired by a prominent firm because executives at the firm believe that graduates of this university must have a high ability level or they would not have graduated. Which of the following theories of education do the executives believe?
a. signaling theory
b. human-capital theory
c. compensating-differentials theory
d. All of the above are correct.
a
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Describe what has happened to state obesity rates in the United States since 1994
What will be an ideal response?
In the case of a negative externality, the socially optimal output naturally exists if
A. the external costs associated with the negative externality are extremely small. B. the external costs divided by price is equal to price divided by marginal private cost. C. there are no free riders. D. the public good aspects of the negative externality outweigh the costs incurred by the negative externality. E. none of the above
Brand Name Drug Industry Dynamics Market approval in the US for new pharmaceutical products is a long, arduous, and expensive process. Once approved, patent protection keeps close substitute products from entering for some years. If the demand for a particular product is stable, what would you predict for the profitability after approval and prior to patent expiration?
Assume Roger's income to spend on books and movie tickets is $48, and his budget constraint is represented by line B. What would cause his budget constraint to move to A?
A. Roger gets a raise at work.
B. Roger gets unlimited coupons for $2 off the price of a movie ticket.
C. The price of movie tickets increases to $8.
D. None of these changes would cause Roger's budget constraint to move from B to A.