Requiring that applicants get drug tested is an example of:
A. statistical discrimination.
B. building a reputation.
C. screening.
D. signaling.
Answer: C
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Explain two reasons why the Fed does not have complete control over the level of bank deposits and loans. Explain how a change in either factor affects the deposit expansion process
What will be an ideal response?
One of the weaknesses in pursuing the objective of profit maximization is that it ignores
A) the timing of cash flows. B) the time-value of money concept. C) the riskiness of cash flows. D) All of the above
An increase in each of the following factors would normally provide a subsequent increase in quantity demanded, except:
a. price of substitute goods b. level of competitor advertising c. consumer income level d. consumer desires for goods and services e. a and b
The slope of the consumption function equals the
a. price elasticity of demand. b. marginal propensity to consume. c. marginal rate of investment. d. marginal propensity to save.