An arbitrary preference by an employer for one group of workers over another is termed:
A. employer discrimination.
B. statistical discrimination.
C. customer discrimination.
D. employee discrimination.
Answer: A
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The reason a shock to one sector can spread to the whole economy is that
a. a decrease in production in one sector leads to an overall decrease in spending b. firms will need to help bail out other firms that are having troubles c. an increase in production in one sector will lead to an overall decrease in spending d. most shocks are not sector-specific but economy-wide e. workers laid off in the one sector will purchase more goods in another sector
Which of the following is not true about the Federal Reserve banks?
A. They serve as bankers' banks. B. They compete with commercial banks in their basic functions. C. Unlike other banks, they are not motivated by profits. D. They are privately owned but government-controlled.
Because the smallcountry monopolist loses the ability to control the market price, consumers enjoy more quantity, competitive prices, and:
a. a bonus because the foreign goods are of higher quality. b. a loss because the monopoly loses profits. c. higher consumer surplus because the monopolist's producer surplus is reduced. d. a loss because now unions have less power than before.
Explain how more than one possible state of nature affects contract choices
What will be an ideal response?