When a transaction takes place repeatedly, then one way to signal to avoid information asymmetry is:
A. screening.
B. statistical discrimination.
C. building a reputation.
D. Any of these could be true.
Answer: C
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Labor market discrimination refers to
a. differing economic opportunities offered to persons according to their productivity. b. wage differentials based on productivity differences. c. differing economic opportunities based on personal characteristics. d. wage differentials based on seniority and human capital.
Construction workers frequently sponsor political lobbying in support of greater public spending on highways and public buildings. One reason for this is to:
A. restrict the supply of construction workers. B. increase the elasticity of demand for construction workers. C. increase the demand for construction workers. D. increase the price of substitute inputs.
When the benefit of another hour of work is greater than the opportunity cost, we would expect the worker to work:
A. another hour. B. an hour less. C. exactly that amount. D. Cannot be determined without more information.
Figure 11-1
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In Figure 11-1, a cost-reducing technological breakthrough in calculator production would cause which movement?
A. A to D B. A to C C. A to B D. A to E