If a major technological breakthrough occurs, then the:
A. investment demand curve will shift downward.
B. investment demand curve will shift upward.
C. consumption function will shift downward.
D. consumption function will shift upward.
Answer: B
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Predicting business cycles is difficult because
A) they are very persistent. B) the weather changes unpredictably. C) statistics lie. D) their frequency is irregular.
Suppose that you have just read a review of the literature of the effect of beauty on earnings
You were initially surprised to find a mild effect of beauty even on teaching evaluations at colleges. Intrigued by this effect, you consider explanations as to why more attractive individuals receive higher salaries. One of the possibilities you consider is that beauty may be a marker of performance/productivity. As a result, you set out to test whether or not more attractive individuals receive higher grades (cumulative GPA) at college. You happen to have access to individuals at two highly selective liberal arts colleges nearby. One of these specializes in Economics and Government and incoming students have an average SAT of 2,100; the other is known for its engineering program and has an incoming SAT average of 2,200. Conducting a survey, where you offer students a small incentive to answer a few questions regarding their academic performance, and taking a picture of these individuals, you establish that there is no relationship between grades and beauty. Write a short essay using some of the concepts of internal and external validity to determine if these results are likely to apply to universities in general. What will be an ideal response?
Regarding the causes of pollution, economists believe that:
a. the pricing system has failed. b. the public interest requires that pollution to be reduced below its market level. c. a firm pollutes the air and water because they are free. d. All of the above are correct.
Which of the following is not a reason that paying efficiency wages may increase a firm's profit?
a. Efficiency wages increase worker health and therefore increase worker productivity. b. Efficiency wages decrease worker turnover and therefore decrease hiring and training costs. c. Efficiency wages decrease worker shirking and therefore increase worker productivity. d. Efficiency wages are below the equilibrium wage rate but still attract a sufficient number of workers.