The wage of a known high-quality worker, wh, is $10,000. The wage for a known low-quality worker, wl, is $4,000. The share of the work force that is of high quality, s, is 0.5
For what value of the cost, c, of a college education that serves only as a signal of a high-quality worker does a pooling equilibrium exist? A) c > $3,000
B) c < $3,000
C) c < $1,000
D) c = $2,500
A
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If stricter immigration laws are imposed and many foreign workers in the United States are forced to go back to their home countries,
A) we will move down along the long-run aggregate supply curve. B) we will move up along the long-run aggregate supply curve. C) the long-run aggregate supply curve will shift to the right. D) the long-run aggregate supply curve will shift to the left.
Convexity of indifference curves imply that consumers are willing to
A) give up more "y" to get an extra "x" the more "x" they have. B) give up more "y" to get an extra "x" the less "x" they have. C) settle for less of both "x" and "y". D) acquire more "x" only if they do not have to give up any "y".
Define the following terms and explain their importance to the study of macroeconomics:
a. exchange rate b. depreciation c. devaluation d. fixed exchange rates
Forecasts of either the inflation or the real GDP growth rate for the year ahead typically err
A. by +1/2 to 1 percentage point. B. by +2 to 4 percentage point. C. by +3 to +5 percentage point. D. None of the above is correct.