Which is NOT an example of signaling high quality in a social setting
a. wearing everyday clothes to a job interview
b. leaving a big tip for the waiter after a dinner date
c. offering an expensive engagement ring to your bride
d. Visiting the beauty salon before a big date
a
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Insurance companies can reduce risk by accepting premiums from
A) many people to insure against independent events. B) few people to insure against dependent events. C) few people to insure against independent events. D) many people to insure against dependent events.
The inverse demand in a Cournot duopoly is P = a ? b(Q1 + Q2), and costs are C1(Q1) = c1Q1 and C2(Q2) = c2Q2. The government has imposed a per-unit tax of $t on each unit sold by each firm. The tax revenue is:
A. greater than t times the total output of the two firms should there be no sales tax. B. t times the total output of the two firms should there be no sales tax. C. less than t times the total output of the two firms should there be no sales tax. D. None of the answers is correct.
Which is especially useful for comparing data?
a. line graph b. bar graph c. pie graph d. circle graph
When the growth rate of the economy slows we would expect:
A. the risk spread to increase more between Aaa and Baa securities than U.S. Treasuries and Aaa securities. B. the risk spread to increase more between U.S. Treasury Securities and Aaa securities than between Aaa and Baa securities. C. the risk to increase for U.S. Treasury securities. D. investors to purchase more junk bonds in search of a higher yield.