If diplomas work efficiently in signaling productive capabilities to employers, the resulting equilibrium
A) will be a separating equilibrium.
B) will be a pooling equilibrium.
C) will always be inefficient.
D) will never be efficient.
A
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Anything that would cause people to want to hold more of their money as cash and less in the form of check able deposits would
a. increase the multiple expansion of the money supply. b. cause the Federal Reserve to raise the reserve requirement. c. reduce the multiple expansion of the money supply. d. increase the size of the money supply.
Both the supply and demand curves can shift due to changes in income
a. True b. False
Most economic models incorporate the assumption of rational behavior on the part of economic actors
a. True b. False Indicate whether the statement is true or false
If monopolistically competitive firms are incurring losses, existing firms would
A) reduce their costs. B) charge higher prices C) make demand more inelastic. D) leave the industry.