Very few players are drafted into the NFL when they play at Division II or Division III schools whereas more players are drafted in the MLB from these schools. What can explain this?
A) Attending a Division II or Division III school sends a stronger signal of future and present quality in the NFL.
B) Attending a Division II or Division III school sends a weaker signal of future and present quality in the MLB.
C) A signal of future and present quality is more important in the MLB than in the NFL.
D) Attending a particular school is like a screening test for life insurance.
A
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Refer to the figure above. Which of the following is likely to happen if a price control above the equilibrium price is imposed?
A) Quantity demanded will exceed quantity supplied. B) Quantity supplied will exceed quantity demanded. C) Consumer surplus will increase. D) Producer surplus will decrease.
When a company whose ability to repay its obligations in full is uncertain,
A) it will have to issue debt with longer maturities than would a company with a lower probability of default. B) its bonds will sell for higher prices than would the bonds of a company with a lower probability of default. C) it must offer investors higher yields to compensate them for the risk they take in buying their bonds or making loans. D) it must do so through financial markets rather than through financial intermediaries.