Screening is the action
A) taken by an informed person to determine the information possessed by uninformed people.
B) taken by an uninformed person to determine the information possessed by informed people.
C) taken to offset signaling.
D) that is cheaper and more effective than cheap talk.
B
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Martha and Wendy start a cookie shop and the business is organized as a corporation. Because of poor planning the business goes bankrupt and the corporation's debt is $30,000. Martha has $30,000 in savings and Wendy has $80,000 in savings
Martha must pay ________ of the debt and Wendy must pay ________ of the debt. A) $0; $0 B) $15,000; $15,000 C) $0; $30,000 D) None of the above answers is correct because each must pay but the amount each must pay cannot be determined without more information about who managed the company.
Refer to the table below. If the discount rate is 5 percent and the cost of the investment is $42,000, what is the net present value of the investment?
The above table shows the future operating profits from an investment. The future operating profits are earned at the end of each of the respective years.
A) $44,854.77
B) $2,854.77
C) $3,599.22
D) $42,464.22
If an economy produces 2,500 units of output with a money supply of $500 and a velocity of 10, we know the price level must be:
A. $1. B. $5. C. $2. D. $10.
A firm will shut down in the short run if
A. fixed costs exceed revenues. B. variable costs exceed revenues. C. total costs exceed revenues. D. it is suffering a loss.