Adverse selection is a situation in which
a. only men are hired for particular jobs
b. comparable worth laws actually reduce the number of women in certain professions
c. people who use illegal drugs apply for jobs where employers do not use drug testing
d. employers have a better knowledge of the productivity of labor suppliers than do the labor suppliers
e. employers attempt to quantify the productivity of their workers
C
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The required reserve ratio is the minimum percentage of ________ that banks are required to hold by regulation
A) reserves as total assets B) deposits as total assets C) reserves as deposits D) deposits as reserves E) reserves as total liabilities
In the New Keynesian model, if there is a decrease in anticipated future total factor productivity, then
A) there should be no change in monetary or fiscal policy. B) the central bank's interest rate target should be increased. C) government spending should fall, and the central bank's interest rate target should rise. D) government spending should increase.
Technological advancements and changes in factor proportions shift a producer's comparative advantage
Indicate whether the statement is true or false
These are characteristics of a competitive industry, except:
a. Many substitutes b. No barriers to entry c. Homogenous product d. Little or no information on rivals' products