Explain how affirmative action programs can produce both desirable incentives as well as disincentives when it comes to investing in education
What will be an ideal response?
Affirmative action programs can produce desirable incentives for historically disadvantaged minorities to invest in education by opening the door of opportunity and giving minorities a better chance at acquiring characteristics that lead to a more productive and fulfilling life. Affirmative action programs can produce disincentives when these programs are relied on by college-bound minority students to ensure admission to the colleges of their choice instead of working hard to improve scores on admission tests.
You might also like to view...
A good economic model
A) describes every aspect of the economic world, with no exception. B) includes all those features of the world that can be described numerically. C) includes only those features of the world that are needed for the purpose at hand. D) should not include more than two variables.
A perfectly competitive industry is in long-run equilibrium. Some firms in the industry adopt new technology that reduces the average total cost of producing the good
In the long run, the price is ________, firms with the new technology make ________ economic profit, and firms with the old technology ________. A) lower; zero; exit the industry B) constant; a positive; make zero economic profit C) lower; zero; switch to the new technology or exit the industry D) constant; zero; exit the industry
Suppose an economy produces milk and honey, and milk is plotted along the horizontal axis of the production possibilities frontier
If the production in the economy is centrally planned (and not market oriented) so that the MRS for the current production level is 3 but the MRT is 2, then there will be an excess ________ for milk and an excess ________ for honey. A) demand, supply B) demand, demand C) supply, demand D) supply, supply E) The market is in equilibrium, and there are no imbalances in supply or demand.
When the Fed unexpectedly increases the money supply, it will cause an increase in aggregate demand because
a. real interest rates will fall, stimulating business investment and consumer purchases. b. the dollar will appreciate on the foreign exchange market, leading to a decrease in net exports. c. lower interest rates will tend to decrease asset prices (for example, stock prices), which decreases wealth and, thereby, decreases current consumption. d. the general level of prices will fall, which will increase the disposable income of households.