The cost, c, of a college education that serves only as a signal of a high-quality worker is $10,000. The wage of a known high-quality worker, wh, is $30,000. The wage for a known low-quality worker, wl, is $10,000
For what value of the share of the work force that is of high quality, s, is a pooling equilibrium possible? A) s > 0.5
B) s = 0
C) s = 0.25
D) s < 0.45
A
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High and unexpected inflation has a greater cost
a. for those who borrow than for those who save. b. for those who hold a little money than for those who hold a lot of money. c. for those who have fixed nominal wages than for those who have nominal wages that adjust with inflation. d. All of the above are correct.
Which of the following would be expected if the tariff on foreign-produced shoes were decreased?
a. The domestic price of shoes would fall.
b. The supply of foreign shoes to the domestic market would decline, causing shoe prices to rise.
c. The number of unemployed workers in the domestic shoe industry would decline.
d. The demand for foreign-produced shoes would decrease, causing the price of shoes to increase in other nations.
According to the aggregate supply drawn under the monetarist view, which of the following would lead to a higher price level?
A. The purchase of bonds in the open market by the Fed. B. An increase in the discount rate. C. An increase in the reserve requirement. D. A decrease in the money multiplier.
If the net public debt declined last year, then which of the following most likely occurred during that year?
A. The share of foreign holdings of the government's debt increased. B. The government experienced a budget surplus. C. The government's budget was balanced. D. The government experienced a budget deficit.