Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. What of the following could result in a movement to point b?

Expansionary fiscal policy crowds out both domestic investment and net exports

Indicate whether the statement is true or false

Which of the following examples best describes the signaling theory of education?

a. The hiring manager offers a job to a recent college graduate because she is more beautiful than the rest of the applicants. b. The hiring manager offers a job to a recent college graduate because she is expected to be more productive than other applicants due to her educational attainment. c. The hiring manager offers a job to a recent college graduate because the hiring manager has a bias toward people with college degrees. d. The hiring manager offers a job to a recent college graduate because education is correlated with natural ability.