Some companies subject their applicants to extensive tests.? Why?
A) to reduce the informational asymmetry between the firm and the applicant
B) to screen the applicant to avoid the problem of adverse selection
C) to gather more information about the applicant
D) All of the above.
Answer: D) All of the above.
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Other things equal:
A. Owners of U.S. businesses benefit from immigration and owners of Mexican businesses are hurt by emigration B. Owners of U.S. businesses are hurt by immigration and owners of Mexican businesses benefit from emigration C. Owners of U.S. businesses benefit from emigration and owners of Mexican businesses are hurt by immigration D. The benefit owners of U.S. businesses receive from immigration is offset by the losses experienced by owners of Mexican businesses due to emigration
Figure 4-13
Refer to . The supply curve S and the demand curve D1 indicate initial conditions in the market for flu shots. A new government program is implemented that grants buyers a $25 subsidy when they buy a flu shot, shifting the demand curve from D1 to D2. Which of the following is true for this subsidy given the information provided in the exhibit?
a.
Buyers of flu shots will receive an actual benefit of $10 from the subsidy, while sellers of flu shots will receive an actual benefit of $15 from the subsidy.
b.
Buyers of flu shots will receive an actual benefit of $15 from the subsidy, while sellers of flu shots will receive an actual benefit of $10 from the subsidy.
c.
Buyers of flu shots will receive the full $25 benefit from the subsidy.
d.
Sellers of flu shots will receive the full $25 benefit from the subsidy.
Which of the following is the formula used for computing economic profits?
A. economic profits = total revenue - implicit costs B. economic profits = total costs - total revenue C. economic profits = total revenue - (implicit costs + explicit costs) D. economic profits = total revenue - explicit costs
When a nuclear-powered electrical plant is permitted to dump radioactive waste at no cost into a recreational waterway lowering the value boaters receive from the waterway, the
a. firm's cost of producing electricity will be higher than the community's true opportunity cost. b. firm will tend to produce too little electricity from the viewpoint of economic efficiency. c. community generally receives an external benefit from the production of electricity. d. firm's cost of producing electricity will be lower than the community's true opportunity cost.