Which of the following is not an example of signaling?
a. screening
b. advertising
c. getting an education
d. gift giving
a
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If the economy is in an inflationary gap, actual income is
A. to the right of LRAS B. to the left of LRAS C. on LRAS D. above LRAS
The manager of Slick Lens, a sunglasses manufacturer, notices that the cost to distribute their sunglasses in the spot market has risen. As a result of the change, which of the following is true?
A) The manager has more of an incentive to integrate forward. B) The manager has more of an incentive to integrate backward. C) The manager has less of an incentive to integrate forward. D) The manager has less of an incentive to integrate backward.
A firm's level of investment depends on the market interest rate: a. only when the firm has to borrow funds to invest in new equipment. b. only when the firm has to borrow funds to buy stocks and bonds. c. only when the firm already has sufficient funds and could lend them
d. because the interest rate represents the opportunity cost of investing in capital. e. because investments are always made with borrowed funds.
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.