College education provides higher income for the individual but also a more productive and more educated person who will contribute to society in many ways. Higher education is an example of:
A. a nonexcludable service.
B. a negative externality.
C. adverse selection.
D. a positive externality.
Answer: D
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Kyle and Stan are playing Odds or Evens, where Kyle is designated as the "odd" player and Stan is designated as the "even" player. They decide to play the game 10 times If Kyle changes from a pure strategy of "shoot 2" and decides to "shoot 1" in two of the games, Stan would be best off if he
A) stuck with a pure strategy of "shoot 2." B) switched to a pure strategy of "shoot 1." C) stuck with a mixed strategy of "shoot 1" 50% of the time and "shoot 2" 50% of the time. D) switched to a mixed strategy of "shoot 1" more than 50% of the time and "shoot 2" less than 50% of the time.
Which of the following summarizes the impact of population growth on the labor market?
A) This will increase the labor supply, reduce the equilibrium wage and increase the quantity of labor demanded. B) There will be an increase in both the demand for labor and the supply of labor. As a result, the equilibrium wage will not change. C) There will be an increase in the demand for labor. As a result, the wage rate will rise and the quantity of workers supplied will decrease. D) There will be an increase in the demand for jobs. This will result in an increase in the equilibrium wage rate and a movement along the labor supply curve.
________ might cause the borrowing constraint to become non-binding, even though the consumer still cannot borrow
A) An increase in future (expected) income B) An increase in the real interest rate C) A decrease in current income D) A decrease in the real interest rate
In the distributed lag model, the dynamic causal effect
A) is the sequence of coefficients on the current and lagged values of X. B) is not the same as the dynamic multiplier. C) is generated by choosing different truncation points for the HAC standard errors. D) requires estimation of the model by Cochrane-Orcutt method.