If an employer cannot distinguish the ability of workers a separating equilibrium will result
Indicate whether the statement is true or false
False. When an employer cannot distinguish the abilities of the workers, the employer will pay all workers an average wage. This is a pooling equilibrium.
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Inventory accumulation occurs whenever
a. output is less than spending. b. output exceeds spending. c. investment exceeds saving. d. a deficit budget occurs.
What would the Herfindahl-Hirschman Index equal for an industry consisting of 20 firms with each holding a 5 percent market share?
A. 20 B. 100 C. 500 D. 2,500
Jack's Lock and Key is considering remodeling. It estimates that the remodeling will cost $6,000 and that as a result revenues will rise by $3,000 the first year, $2,500 the second year, $1,500 the third year and have no effect after then. If the interest rate is 5%, should Jack's remodel? Defend your answer by showing your work
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.