Which firm is not dealing with adverse selection
a. a manufacturer forgoes a usual 90 day probationary period for new employees
b. a temporary clerical agency requires a typing test
c. a manufacturer requires suppliers to be ISO 9000 certified
d. Smokers get the worse life insurance rates as non-smokers
a
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All of the following shift the supply of watches to the right except
a. an increase in the price of watches b. an advance in the technology used to manufacture watches c. a decrease in the wage of workers employed to manufacture watches d. manufacturers' expectations of lower watch prices in the future. e. All of the above cause an increase in the supply of watches.
The purpose of the ceteris paribus assumption used in economic analysis is to:
A. avoid making positive statements. B. avoid making normative statements. C. restrict the analysis to the effect of a single economic factor. D. make sure that all relevant factors are considered.