A Principles of Microeconomics professor wants to know how much prior knowledge her students have before beginning the class so she gives them a pre-test. This action is an example of
a. signaling.
b. screening.
c. adverse selection.
d. moral hazard.
b
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Wealth is the same as:
A. assets. B. capital gains. C. net worth. D. savings.
Bonnie volunteers to help make floral arrangements at a flower shop. She is an example of
A) entrepreneurial ability. B) labor. C) physical capital. D) human capital.
Other things the same, an increase in the interest rate
a. would shift the demand for loanable funds to the right. b. would shift the demand for loanable funds to the left. c. would increase the quantity of loanable funds demanded. d. would decrease the quantity of loanable funds demanded.
Institutionally-focused economists argue:
A. the equation of exchange is incorrect. B. the equation of exchange should be read from left to right. C. the equation of exchange should be read from right to left. D. both the quantity theory and the equation of exchange are incorrect.