Suppose Gigantic Health Cooperative doesn't hire Mandy Morrison solely because she is a graduate of a particular foreign medical school, which is not known for the high quality of its graduates. Yet, Mandy is actually more qualified than the average
graduate of American medical schools. This is an example of:
A. monopsony exploitation.
B. human-capital discrimination.
C. statistical discrimination.
D. irrational behavior.
Answer: C
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It is generally easier to prevent deforestation than fishery collapse because:
A. it is easier to establish and enforce property rights on national lands than in international waters. B. there is greater incentive to have sustainable forests than sustainable fisheries. C. the demand for wood products has dropped significantly while the demand for fish has grown significantly.
Unemployment rates tend to be highest during periods of:
A. recession. B. economic boom. C. recovery. D. static movement.
In this graph, what causes point A to move to point B?
a. a decrease in interest rates in the short run
b. an increase in interest rates in the short run
c. a decrease in interest rates in the long run
d. an increase in interest rates in the long run
Which of the following statements is correct?
A. The Social Security program funnels transfers from retired individuals to the youngest children of low-income families. B. As a public transfer payment, Social Security benefit is available only to the poor. C. Social Security benefits are received by people who had contributed to the fund during their active work years. D. Social Security is an entitlement which is available to everyone, including those who have not contributed to the fund during their active work years.