Jay was just drafted by a professional baseball team, and was offered a record-breaking contract because of his potential. This is an example of
a. a human capital differential.
b. a compensating differential.
c. signaling theory.
d. the superstar phenomenon.
d
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In a small, agricultural nation, consumers buy only steak and potatoes. In 2009, the base year, the typical consumer spent $potatoes on strawberries and $100 on steak. The price of potatoes is $1 and the price of steak is $2 in 2009
In 2009, the price of potatoes is $2 and the price of steak is $1. The CPI for 2010 is A) 80. B) 125. C) 100. D) 110. E) 25 percent.
In order to determine a household's budget line, you must know the
A) prices of the goods bought and the household's income. B) prices of the goods bought, but not the household's income. C) household's income, but not the prices of goods bought. D) household's income, prices of the goods bought, and the household's preferences.
Commercial paper has a maximum maturity of
A) one day. B) seven days. C) 30 days. D) 270 days.
Business-class airline tickets cost much more than coach-class tickets because, compared to householders, businesspeople's demand for travel is
a. equally elastic b. unitary elastic c. more elastic d. less elastic e. not a factor in the cost of airline tickets