In a labor-market separating equilibrium with high-skill and low-skill workers and where a costly educational degree is used solely as a signal device, we can say that
A) education is socially inefficient because it is costly and provides no useful skills to the worker.
B) education is socially efficient.
C) education is privately inefficient for high-skill workers.
D) education is privately useful for low-skill workers only.
A
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Real business cycle theory explains variations in prices, employment, and real Gross Domestic Product (GDP) by focusing on
A) changes in real variables such as supply shocks, technological changes, and shifts in the composition of the labor force. B) anticipated changes in fiscal policy enacted by the government. C) the effects of the Phillips curve. D) anticipated monetary policies enacted by the Fed.
Why do landlords tend to discriminate against a person's race, religion, or age more when rent controls are imposed?
A) Landlords are naturally racist and bigoted. B) Only minority groups will take an interest in apartments with controlled rents. C) Economists will encourage landlords to discriminate. D) Rent controls lower the personal costs of discriminatory behavior among landlords. E) For all of the above reasons.
A particular brand of red soda was pulled from the market because company executives felt it was not modern enough. Immediately, people began contacting the company asking for the product to return, threatening to quit buying the company’s other products, and expressing their desire to pay a premium for the red soda. As a result, the company put it back on the market. This is an example of ______.
a. production possibilities b. centralized planning c. government bureaucracy d. consumer sovereignty
Social Security requires workers to contribute to an account that is held in their name at the Treasury and invested in government and highly-rated private sector bonds.
Answer the following statement true (T) or false (F)