What does the demand curve for British pounds tell us?
a. The quantity of pounds people will want to sell at each different exchange rate
b. The quantity of pounds people will want to buy at each level of output
c. The quantity of pounds people will want to buy at each different exchange rate
d. The quantity of pounds people will want to sell in each different time period
e. The quantity of pounds people will want to buy at each different interest rate.
C
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Which of the following is a distinction between general and specific human capital?
A. General human capital consists of training and education that is valued by different firms, whereas specific human capital is more valuable to the current employer. B. General human capital leads to self-selection on the basis of risk preference, whereas specific human capital leads to the adverse selection problem. C. General human capital enables workers to earn compensating wage differentials, whereas workers with specific human capital earn the competitive wage rate. D. General human capital leads to higher labor costs, whereas specific human capital leads to higher turnover costs.
In the circular flow model, savings is considered a leakage because
A. it does not get counted toward an individual’s accumulated wealth. B. it becomes an input toward venture capital C. it contributes to the budget surplus. D. it is the amount that consumers do not spend of their disposable income.
What is the difference between the structural stagnation hypothesis and the secular stagnation theory?
A. Structural stagnation sees foreign countries moving down the value-added chain as the cause of a stagnation, while secular stagnation sees foreign countries moving up the value-added chain as the cause of a stagnation. B. Structural stagnation sees too little investment as the cause of a stagnation, while secular stagnation sees globalization as the cause. C. Structural stagnation sees globalization as the cause of a stagnation, while secular stagnation sees too little investment as the cause. D. There is no difference, they both attribute stagnation to too little investment.
Which of the following would be considered an example of adverse selection?
A. Malpractice insurance may increase the amount of malpractice B. Drivers may be less cautious because they have airbags installed in a car C. Those individuals who most need insurance are the ones most likely to buy it D. Work contracts that give a set number of sick-days may encourage more workers to call in sick