A job candidate refusing to take a drug test for a potential employer is an example of:
A. principles-based behavior.
B. screening.
C. building a reputation.
D. signaling.
Answer: D
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A worker has negotiated a nominal wage contract with his employer for a period of 3 years. Which of the following will happen if the rate of inflation rises beyond the worker's expectation during this period?
A) The worker's real wage will increase. B) The worker will be better off. C) The company's shareholders will be worse off. D) The worker will be worse off.
The income approach measures GDP by adding together compensation of employees, proprietors' income, ________
A) net investment, saving, and farmers' income B) net interest, rental income, and corporate profits C) net investment, rental income, and corporate profits D) net saving, investment income, and profits
Which of the following statements is false?
A. In the case of a negative externality, the market equilibrium is inefficient. B. In the case of a negative externality, when a tax is set equal to the marginal external costs (MEC) efficiency can be achieved. C. In the case of a negative externality, when a tax is set that is greater than the marginal external costs (MEC) inefficiency will result. D. In the case of a positive externality, when a tax is set equal to the marginal external benefits (MEB) efficiency can be achieved.
? Output (units) 0 1 2 3 4 5 Total Revenue ($) 0 9 16 21 27 31 Total Cost ($) 10 12 15 19 26 35To maximize its profits, the firm described in Table 8-1 should produce ____ unit(s) of output.
A. 1 B. 2 C. 3 D. 4