The difference between the minimum price the producer is willing to accept and the price the producer actually receives for a product is referred to as:
a. market surplus
b. market shortage
c. buyer surplus
d. seller surplus.
d
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A consequence of adverse selection is:
A. buyers gain surplus they would have lost with complete information. B. sellers gain surplus they would have lost with complete information. C. transactions do not take place that would have been possible if the parties had the same information. D. buyers make irrational decisions because they lack information.
In the same city, one job currently pays $6 more per hour than another job. The two jobs have equivalent training requirements, but labor is not migrating toward the higher-paying occupation. Both markets are perfectly competitive. Which of the following conclusions is correct?
a. The lower-paying occupation has less attractive nonmonetary characteristics. b. There are barriers to entry into the higher-paying occupation. c. The higher-paying occupation has a dominant labor union. d. There are barriers to entry into the lower-paying occupation. e. The higher-paying occupation has less attractive nonmonetary characteristics.
Which of the following policies would be most likely to reduce the rate of inflation?
A. sale of government bonds by the Federal Reserve B. a reduction in the discount rate C. an increase in the size of the federal budget deficit D. a reduction in the required reserves imposed on the banking system
Refer to the information provided in Scenario 22.3 below to answer the question(s) that follow.SCENARIO 22.3: Consider a local high school that has 300 sophomores considered to be at-risk students. A privately-sponsored after-school sports program has been established to try to help at-risk students succeed in finishing high school. The local government wants to know if this program reduces the students' probability of dropping out of high school before the end of their junior year, and decides to randomly sample 150 of the 300 at-risk sophomores and invite them to attend the after-school program at no cost. 100 students accept the invitation, and by the end of their junior year, the drop-out percentage of the 100 students who attended the program was lower than the drop-out percentage of
the 200 students who did not attend the program. Refer to Scenario 22.3. Based on the information in the scenario, can you conclude that the after-school program had a positive effect? A. Yes, because the drop-out percentage for those students who attended the program was lower than the drop-out percentage for those students who did not attend the program. B. Yes, because the 150 students offered the program were a random sample. C. No, because less than half of the at-risk students attended the program. D. No, because we cannot assume the 100 students who accepted the offer were a random sample.