A job candidate refusing to take a drug test for a potential employer is an example of:
A. screening.
B. building a reputation.
C. signaling.
D. principles-based behavior.
C. signaling.
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The above figure shows the demand and supply curves for housing. What would be the effects of a rent ceiling equal to $500 per month?
A) a surplus equal to 3,000 apartments B) a shortage equal to 3,000 apartments C) a shortage equal to 250 apartments D) nothing because the rent ceiling has no effect on the equilibrium price and quantity
Assuming a simultaneous reduction in income taxes and transfer payments of $50 billion, then aggregate disposable income will
a. be higher than before. b. be lower than before. c. remain constant. d. None of the above
If the efficient-market hypothesis is true, then the idea of:
A. herd instinct holds. B. herd instinct doesn't always hold. C. tulip mania holds. D. tulip mania doesn't always hold.
If we observe that when the price of chocolate decreases by 10%, quantity demanded increases by 25%, then the demand for chocolate is price elastic
a. True b. False Indicate whether the statement is true or false