Which of the following is an example of screening?
A. A car buyer asking the seller if the car is a lemon
B. Selling pollution permits to polluters to induce the lowest-cost pollution reducers to cut back on pollution
C. An employer requiring job applicants to provide references
D. Reducing pollution to the point at which the marginal cost of the pollution equals the marginal benefit
Answer: C
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Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the monopoly price. What is the per-unit price?
A) $28 B) $24 C) $12 D) $8
In the balance of payments, all of the following are deficit items EXCEPT
A) imports of merchandise. B) funds placed in foreign depository institutions. C) sales of dollars to foreigners. D) tourism expenditures abroad.
The short-run Phillips curve is downward sloping but the long-run is a vertical line
a. True b. False Indicate whether the statement is true or false
Assume that we want to drive our economy out of recession by generating a $400 billion change in national income. The MPC is 0.8 . Which of the following policy prescriptions would generate the targeted $400 billion change in income?
a. $120 billion increase in government spending and $50 billion increase in tax revenue b. $140 billion increase in government spending and $70 billion increase in tax revenue c. $160 billion increase in government spending and $120 billion increase in tax revenue d. $220 billion increase in government spending and $100 billion increase in tax revenue e. $400 billion increase in government spending and $300 billion increase in tax revenue