Starting salaries for female OB/GYNs are higher than those of male OB/GYNs. What is the best explanation for this?
a. Female OB/GYNs have more human capital than male OB/GYNs.
b. Female OB/GYNs are smarter than male OB/GYNs.
c. The demand for female OB/GYNs is greater than the demand for male OB/GYNs.
d. The demand for female OB/GYNs is less than the demand for male OB/GYNs.
e. More males are in OB/GYN residency programs than females.
C
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The price of a computer in the United States is $1,000. The price of a car in Germany is 10,000 euros. The current exchange rate is 0.9 euros per dollar
a) If a computer is exported from the United States to Germany with no barriers to trade, what will be the price of the computer in Germany? b) If a car is imported to the United States from Germany with no barriers to trade, what will be the price of the car in the United States? c) Suppose the dollar appreciates by 10 percent against the euro. How will the price of a computer exported from the United States change in Germany? d) Suppose the dollar appreciates by 10 percent against the euro. How will the price of a car imported to the United States from Germany change in the United States?
The use of collateral
A) allows banks to charge higher interest rates on loans. B) makes it more costly for borrowers to take advantage of their asymmetric information. C) makes it more costly for lenders to take advantage of their asymmetric information. D) has important tax implications for both borrowers and lenders.
A player's best response is
A) the strategy that maximizes his payoff given what he thinks the other player will do. B) a dominant strategy. C) impossible to find when there isn't a Nash equilibrium. D) a way to avoid the prisoners' dilemma.
If investment is not sensitive to changes in the interest rate, then changes in the money supply: a. will have no effect on interest rates
b. will have no impact on the quantity of money demanded. c. will have no effect on the aggregate demand of an economy. d. will have a major impact on the aggregate demand of an economy. e. will have a major impact on the price level in an economy.