Generalizing using statistical discrimination is:
A. an irrational response and always leads to loss of surplus.
B. a rational response to being on the wrong end of an information asymmetry.
C. a rational response, although government always steps in to prevent it.
D. All of these statements are true.
B. a rational response to being on the wrong end of an information asymmetry.
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What type of consumer goods are most affected by the business cycle: durable goods or nondurable goods? Why?
What will be an ideal response?
How the price of a depletable resource changes over time depends on
a. how the technology of resource extraction changes. b. the interest rate. c. how the technologies of production change in firms that use the resource. d. All of the above are correct.
At the equilibrium price of a good, the good will be sold by those sellers
a. whose cost is more than price. b. whose cost is less than price. c. that can produce the good. d. enter the market first.
The effects of unionization on wages in the sectors of the economy that are unionized causes the supply of labor in other sectors of the economy to
a. decrease, raising wages in industries that are not unionized. b. decrease, reducing wages in industries that are not unionized. c. increase, raising wages in industries that are not unionized. d. increase, reducing wages in industries that are not unionized.