If a college degree is used to signal high ability, but the cost of a college degree is relatively high,
A) a separating equilibrium is achieved.
B) a pooling equilibrium is achieved.
C) even low-ability workers will attend college.
D) the share of high-ability workers must be 1.
B
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If a country voluntarily agrees to have its companies import more goods from another country, the country has
A) a voluntary import expansion (VIE) agreement. B) a voluntary restraint agreement (VRA). C) a mandated tariff. D) a mandated agreement.
If government purchases exceed tax revenue, there is a budget deficit
a. True b. False Indicate whether the statement is true or false
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.
When should a firm shut down? When should a firm go out of business?
What will be an ideal response?