Explain why some people who are applying for a job at a bank dress up, arrive early, and have their paperwork neatly completed for the job interview
What will be an ideal response?
They are trying to eliminate adverse selection. These people are trying to signal that they would be a high-quality worker for the position at the bank.
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An inside lag is
A) a policy aimed at reducing GDP. B) a lag in implementing policy. C) the period of time it takes for policies to work. D) a policy aimed at increasing GDP.
What is likely to happen to the allocation of resources if there is a sudden increase in the demand for a good produced by a perfectly competitive industry?
What will be an ideal response?
The demand for food is most elastic in countries
A) with low income levels. B) with intermediate income levels. C) with high income levels. D) that are highly urbanized.
As part of recent cutbacks, Paul just accepted a 10% cut in pay. Now he brews coffee at home instead of stopping at Starbucks every day. Based on this behavior, we can say home-brewed coffee:
A. is a normal good, and Starbucks coffee is an inferior good for Paul. B. and Starbucks coffee are normal goods for Paul. C. will become a normal good for Paul over time. D. is an inferior good, while Starbucks coffee is a normal good for Paul.