The present position of a nation on its production possibilities curve will influence the future position of the production possibilities curve.

a. true
b. false


Ans: a. true

Economics

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How does correlation differ from causation? Give an example of each to illustrate your answer.

What will be an ideal response?

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Which of the following correctly identifies a difference between taste-based discrimination and statistical discrimination?

A) Taste-based discrimination is observed in the service sector, whereas statistical discrimination is observed in the manufacturing sector. B) Taste-based discrimination is observed in the manufacturing sector, whereas statistical discrimination is observed in the service sector. C) Employers engaging in taste-based discrimination are willing to forego profits, whereas employers engaging in statistical discrimination are trying to enhance profits. D) Employers engaging in statistical discrimination are willing to forego profit, whereas employers engaging in taste-based discrimination are trying to enhance profits.

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Adverse selection occurs when there is

A) full information. B) unobserved behavior. C) an unobserved characteristic. D) a worker who shirks because his boss does not watch him.

Economics

A consequence of an incentive contract for employees is that

a. employees must incur additional risk b. employee level risk is reduced c. employer level risk is reduced d. there are no risk related consequences

Economics