One of the reasons the student loan repayment plan at Yale did not work was because:
A. complete information was given to both the students and the University.
B. there was an adverse selection of students into the program.
C. the moral hazard of students made them take riskier jobs.
D. the collective bargaining with the students reached an impasse.
B. there was an adverse selection of students into the program.
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An efficient customer sorting rule is one in which
a. customers with high willingness to pay secure the discounted goods b. customers are rationed randomly between the discounted and full price goods c. no customer purchase below her willingness to pay d. customers with the lowest willingness to pay secure the discount goods e. brand loyalty allows the incumbent to retain its regular customers
Hooterville has seen its population grow by 200% over the past decade (10 years). Urban sprawl has occurred as city services have been extended to formerly rural areas. Mark's Manhole Cover Company, Inc has seen sales to the City of Hooterville triple during this period. This is most likely due to
a. increased manhole cover prices b. increased quantity supplied of manhole covers c. altered consumer expectations d. increased demand for manhole covers e. increased supply for manhole covers
If a series of major technological breakthroughs occur in the economy at the same time, then the most likely outcome would be that the economy's
a. investment curve will shift downward b. investment curve will shift upward c. consumption curve will shift downward d. consumption curve will shift upward e. position along the existing investment curve will move upward
A compensating differential refers to differences in pay due to
a. productivity levels of workers. b. signaling differences of workers. c. nonmonetary characteristics of jobs. d. All of the above are correct.