Often you will hear students say that a college degree is nothing more than a piece of paper
They argue that there are many successful people who don't go to college that are managing large corporations or otherwise have fulfilling and rewarding careers. Given that this is true does this undermine the usefulness of a college degree as a signaling device?
While it may be true that there are many capable and successful people in the world without college degrees earning one communicates a lot of important information to would-be employers about the job candidate's work effort. Many business virtues that are necessary in order to get a college degree including persistence, carrying things through to completion, patience, and meeting deadlines. While not all college students with degrees have these qualities the degree itself is an overall good signal that these traits have a high probability of being a part of the degree holder's traits.
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Appleville is a village that specializes in all forms of apple products. Suppose that each winter, when no apples are being produced, the aggregate output falls below the long-run output level. What type of fiscal policy might be most effective to correct this problem?
A) Reducing taxes in order to decrease aggregate demand. B) Increasing government spending in order to increase aggregate demand. C) Decreasing government spending in order to increase aggregate demand. D) Increasing taxes in order to increase aggregate demand.
What might explain a professional baseball player having lower production the year after signing a multimillion dollar contract?
A) the substitution effect B) the endowment effect C) bounded rationality D) the income effect
Which of the following is not true about a monopolistic competitor?
A. It charges a higher price than a perfectly competitive firm, ceteris paribus. B. It produces less output than a perfectly competitive firm, ceteris paribus. C. It can earn economic profits in the long run. D. It maximizes profit at the point where MC = MR.
Suppose that the alternative uses of an hour of your time in the evening, ranked from best to worst, are (1) study economics, (2i) watch two half-hour TV sitcoms, (3) play pool, and (4) jog around town. You can only choose one activity. What is the opportunity cost of studying economics for one hour, given this information? a. Jogging around town
b. Watching two half-hour TV sitcoms. c. Playing pool. d. The sum of watching two half-hour TV sitcoms, playing pool, and doing your laundry.