A woman gives her boyfriend a birthday present. The gift could be viewed by the boyfriend as a
a. moral hazard problem.
b. screening device.
c. signal of how much she cares for him.
d. All of the above are correct.
c
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One theory discussed in the textbook is that there is a direct relationship between the opportunity cost of having children and the number of children a woman will have
Indicate whether the statement is true or false
When a producer has a comparative advantage in producing a good, it means the producer:
A. has the ability to produce the good at a lower opportunity cost than others. B. is efficient in production. C. has no reason to trade with others. D. can produce more of that good than others with the same number of workers.
Mathematically, the value of the tax multiplier in terms of the marginal propensity to consume (MPC) is given by the formula:
A. MPC ? 1. B. (MPC ? 1) / MPC. C. 1 / MPC. D. 1 ? [1 / (1 ? MPC)].
Accounting profit is equal to:
A. explicit revenue minus explicit measurable costs. B. implicit and explicit revenues minus implicit costs. C. explicit revenue minus implicit and explicit costs. D. implicit revenue minus implicit costs.