Hiring Tech Support Collin County Community College (CCCC) has an ongoing problem that the electronic equipment in their classrooms and computer labs keeps malfunctioning and the repairs that are made seem to cause problems with some other aspect of the
equipment. Due to its bureaucratic structure, CCCC has a hiring preference for their own students and it is only allowed to pay $15 per hour when the going rate is closer to $18 per hour. How does this contribute to CCCC's equipment problems?
CCCC is a victim of adverse selection. Tech support staff members are of varying degrees of competence and expertise. Those who are more competent are better able to migrate to better paying jobs. Those willing to a take below market wage, are the ones who cannot keep better paying jobs.
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One advantage of a floating exchange rate system compared to a fixed or managed float exchange rate system is
A) it is easier for central banks to control inflation. B) there is no need for government intervention. C) it allows greater exchange rate stability. D) it eliminates the possibility of depreciation during a recession.
All else equal, an increase in the government's budget deficit accompanied by a decrease in corporate taxes would definitely result in
A) an increase in the equilibrium real interest rate. B) a decrease in the equilibrium real interest rate. C) an increase in the equilibrium level of saving and investment. D) a decrease in the equilibrium level of saving and investment.
All of the following are examples of transfer payments except
A) welfare benefits to the poor. B) dividend payments to the wealthy. C) Social Security payments to the elderly. D) unemployment compensation to the unemployed.
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.