Which of the following is true of the structure of the public education system in the United States?
A. Teachers are paid based solely on their performance and abilities.
B. School principals do not have budgetary incentives to make bad teachers better.
C. Parents can threaten principals to move their kids to a private school if they are disappointed with the quality of education.
D. Teachers receive monetary incentives to educate students with special needs.
Answer: B
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A prisoner's dilemma is a game in which:
A. the players' payoffs are larger when both play their dominant strategy compared to when both play a dominated strategy. B. neither player has a dominant strategy. C. the players' payoffs are smaller when both play their dominant strategy compared to when both play a dominated strategy. D. one player has a dominant strategy and the other does not.
If aggregate hours are 100 billion hours and labor productivity is $40 an hour, than real GDP equals
A) $100 billion. B) $40 billion. C) $100 trillion. D) $2.5 trillion. E) $4 trillion.
In the case of a positive externality, social marginal cost will
a. exceed private marginal cost. b. be equal to private marginal cost. c. fall short of private marginal cost. d. have no specific relation to private marginal cost.
One way to bring the inflation rate down is
a. to reduce excessive competition b. to increase government spending c. to aggregate across markets d. for the government to purposely cause a severe recession e. to reduce taxes