If the market were perfectly competitive instead of dominated by a monopsonist, what would the equilibrium wage and level of employment be?
a. W1 and E1
b. W2 and E0
c. W0 and E0
d. W0 and E1
e. W0 and E2
A
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If financial markets were perfect, financial intermediaries would
A) be illegal. B) handle roughly half of all finance. C) be the conduit of all finance. D) probably not exist.
All food bought in the United States has an ingredient list on the packaging. This is an example of:
A. screening. B. signaling. C. requiring the more informed party to reveal missing information. D. building a reputation.
Tax policy conducted for the purpose of achieving full employment, price stability, or economic growth is an example of
A. monetary policy. B. discretionary fiscal policy. C. exchange-rate policy. D. interest-rate policy.
The cost, c, of a college education that serves only as a signal of a high-quality worker is $10,000. The wage of a known high-quality worker, wh, is $30,000. The wage for a known low-quality worker, wl, is $10,000. For what value of the share of the work force that is of high quality, s, is a pooling equilibrium possible?
A) s > 0.5 B) s = 0 C) s = 0.25 D) s < 0.45