In a labor-market separating equilibrium with high-skill and low-skill workers and where a costly educational degree is used solely as a signal device, government can increase total social welfare by
A) subsidizing school for low-skill workers.
B) subsidizing school for all workers.
C) eliminating schooling, i.e., banning wasteful signaling.
D) subsidizing school for high-skill workers.
C
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Exhibit 5-8 Supply and demand curves for good X
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In Exhibit 5-8, the price elasticity of supply for good X between points E and X is:
A. 7/5 = 1.40. B. 1/5 = 0.20. C. 5/7 = 0.71. D. 1.
A restriction of imports that is accomplished by a quota normally
A. can be accomplished also by a tariff. B. cannot be replicated exactly by imposing a tariff. C. can be accomplished also by an export subsidy. D. can be accomplished also by negotiations within GATT.
Demand pull inflation can be started by
A) a decrease in net exports. B) an increase in government expenditure. C) a decrease in the money price of resources. D) an increase in the price of oil. E) a decrease in the quantity of money.
The job of the labor ________ is to impose a settlement on labor and management; the job of the labor _______ is to work as a go-between, or expeditor.
Fill in the blank(s) with the appropriate word(s).