If diplomas work efficiently in signaling productive capabilities to employers, the resulting equilibrium
A) will be a separating equilibrium.
B) will be a pooling equilibrium.
C) will always be inefficient.
D) will never be efficient.
A
Economics
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The above figure shows the market for labor. The employer is a monopsony. The firm will not hire 800 hours of labor because at that point
A) VMP > MCL. B) VMP = MCL. C) VMP < MCL. D) VMP = W.
Economics
According to the traditional Keynesian approach, if the government increases taxes, then
A) real Gross Domestic Product (GDP) will fall and the price level will remain constant. B) real Gross Domestic Product (GDP) will fall but the price level will rise. C) both real Gross Domestic Product (GDP) and the price level will fall. D) real Gross Domestic Product (GDP) will remain constant but the price level will rise.
Economics