Which of the following is an example of signaling?
a. Pat is considering the purchase of a used car. Before making the purchase he has the car checked by an auto mechanic.
b. Zach is applying for a new life insurance policy. Before writing the policy, the insurance company requires Zach to be examined by a doctor.
c. Denise is applying for a new job. Before hiring her, the firm requires Denise to take a drug test.
d. Marcus is planning to ask for Chaquila's hand in marriage. Before asking her, he buys her a box of her favorite chocolates and takes her to dinner at her favorite restaurant.
d
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When economists want to hold a number of factors constant, they are demonstrating which of the following expressions?
a. Positive economics model. b. Consumer sovereignty. c. Ceteris paribus. d. Normative economics.
For the capital stock to grow, production of capital goods must
a. exceed the inflation rate b. exceed 15 percent of GDP c. exceed the depreciation of existing capital d. increase from the previous year e. exceed the growth of the labor force
An increase in the price of inputs will cause the supply curve for a product to shift to the right
Indicate whether the statement is true or false
Which of the following people is employed?
a. Kevin, a 12 year old, who is working at a bakery to pay his tuition bills b. Jack, an employee who was fired last month, not actively looking for a paid job c. Kate, a software engineer, who is working as a software developer d. Dave, an economics graduate, who will join his new office after a month