If an employer calls an applicant's prior employer to inquire about their work ethic, this is an example of ________.
A) the principal-agent problem
B) screening
C) self-revelation
D) certification
B) screening
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The circular flow model of the economy shows
a. the flow of money, goods, and services between households and firms b. why specific flows occur c. the relationship between money and goods within households d. the relationship between resources and the prices of resources e. the flow of resources from households to firms
We would expect the interest rate on Bond A to be lower than the interest rate on Bond B if the two bonds have identical characteristics except that
a. Bond A was issued by a financially weak corporation and Bond B was issued by a financially strong corporation. b. Bond A was issued by the Exxon Mobil Corporation and Bond B was issued by the state of New York. c. Bond A has a term of 1 year and Bond B has a term of 5 years. d. All of the above are correct.
An economy experiences real growth over time with stable aggregate demand. This would likely result in
A. secular inflation. B. increasing prices. C. decreasing prices. D. increased unemployment.
Economic growth will NOT result in deflation if aggregate demand shifts
A. inward to the left as aggregate supply shifts outward to the right. B. outward to the right as aggregate supply shifts inward to the left. C. inward to the left at the same speed as aggregate supply. D. outward to the right at the same speed as aggregate supply.