Signals can help prevent adverse selection as long as a false signal is costly to the person sending it
Indicate whether the statement is true or false
True . If false signals can be made at little cost to the perpetrator, the signals are meaningless. Signals are believed only when they are credible.
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The Ricardian proposition that international trade will benefit any country ("gains from trade") as long as the world terms of trade do not equal its autarkic relative prices is a straightforward and powerful concept
Nevertheless, it is impossible to demonstrate empirically. Why?
Under the Dawes Act of 1887,
a. nearly 100 million acres of Indian territories were opened for public purchase. b. "squatters" rights were legally recognized. c. substantial tracts of land were granted to western railroads. d. 160 acres was granted to anyone who agreed to plant trees on at least 40 acres.
Retailers do not find it profitable to engage in promotional activities because
a. They reap the full benefits of the promotion b. They do not have to share the benefits of the promotion with the manufacturer c. They are wary of competing retailers' ability to "free ride" on their efforts d. All of the above
Suppose a certain firm is able to produce 165 units of output per day when 15 workers are hired. The firm is able to produce 181 units of output per day when 16 workers are hired, holding other inputs fixed. The marginal product of the 16th worker is
a. 10 units of output. b. 11 units of output. c. 16 units of output. d. 181 units of output.