An insurance company offering a high-deductible plan is an example of:
A. screening.
B. signaling.
C. building a reputation.
D. statistical discrimination.
Answer: A
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A decrease in the real interest rate leads to a ________ the demand for loanable funds curve, and a decrease in the expected profit leads to a ________ the demand for loanable funds curve
A) rightward shift in; leftward shift in B) movement down along; movement up along C) rightward shift in; movement up along D) movement down along; leftward shift in
What determines how much market power a firm has?
What will be an ideal response?
The theory of consumer behavior is based on certain assumptions. The set of four basic assumptions includes:
A) completeness. B) transitivity. C) intransitivity. D) Both A and B are correct. E) Both A and C are correct.
If the price of a motorcycle is $5,000 . and workers who make motorcycles earn a wage rate of $50, how many workers will be hired when the labor market is in equilibrium?
a. There is not enough information to determine how many would be hired. b. Hiring will continue until the price falls to $50 . c. Hiring will continue until the wage rate rises to $5,000. d. Hiring will continue until the MRP of the worker is greater than zero. e. Hiring will continue until the MPP of the last worker is 0.01 motorcycles.