Experience ratings provide firms with an incentive to:
A. hire older workers.
B. invest in health and safety programs.
C. hire disabled workers.
D. None of these
Answer: B
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Adjudication reduces problems created by negative externalities by
A) assigning liability to the party most able to pay (the deep pocket). B) balancing marginal social benefits against marginal social costs. C) discovering who has what rights. D) making more accurate private benefit-cost analyses. E) measuring externalities more precisely.
How does an increase in a country's exchange rate affect its balance of trade?
A) An increase in the exchange rate raises imports, reduces exports, and reduces the balance of trade. B) An increase in the exchange rate reduces imports, raises exports, and increases the balance of trade. C) An increase in the exchange rate raises imports, reduces exports, and increases the balance of trade. D) An increase in the exchange rate reduces imports, raises exports, and reduces the balance of trade.
If the BLS counted persons that are on active military service in the totals for employment, the labor force, or the working-age population, this would
A) decrease the number of persons in the working-age population. B) decrease the measured unemployment rate. C) decrease the number of persons in the labor force. D) decrease the measured labor force participation rate.
The small-firm effect refers to the
A) negative returns earned by small firms. B) returns equal to large firms earned by small firms. C) abnormally high returns earned by small firms. D) low returns after adjusting for risk earned by small firms.