Suppose a professor announces at the beginning of a course that he will give no failing grades because they are too damaging to self-esteem. How does such a policy affect equality and efficiency?
What will be an ideal response?
Equality increases since the spread of grades now ranges from A to D, rather than A to F. Efficiency decreases since student effort may decline. Those students who just want to pass the course need make no effort at all. (Beyond the subject is whether giving someone something for nothing increases self-esteem over the long run.)
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The skewness is most likely positive for one of the following distributions:
A) The grade distribution at your college or university. B) The U.S. income distribution. C) SAT scores in English. D) The height of 18 year old females in the U.S.
The Federal Reserve Bank is the U.S. central bank:
A. who holds, in reserve, all financial assets of banks. B. who holds, in reserve, all financial liabilities of banks. C. whose assets serve as cash in the United States. D. whose liabilities serve as cash in the United States.
Suppose that the elasticity of demand for a product is 4.0 and quantity demanded increases by 20%. What must the percentage decrease in price have been?
A. 5% B. 20% C. 80% D. 200%
What is the most common method of measuring flows of trade?
a. amount of physical items transported between countries b. amount of manufactured items transported by truck c. comparing annual amounts of goods and services exchanged between countries d. comparing exports of goods, services, and financial capital between countries