You want to add a new room on your house, but you are not familiar with the local building contractors and are not sure who to consider for the job
If you ask your friends for referrals, you are using their past experience as a way to evaluate the ________ of the builders. A) efficiency wages
B) moral hazard
C) asymmetric information
D) reputation
D
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The Solow growth model predicts that a lower labor force growth rate will lead to
A) a decreased steady state and higher break-even investment. B) higher productivity and a higher standard of living. C) a lower saving rate and decreased investment. D) a higher rate of dilution and lower break-even investment.
In what way is the result of a subsidy given to either demanders or suppliers similar to the result of a price ceiling?
a. The amount that consumers pay for the good will be less than they previously paid b. The amount of the good that will be traded in the market will be less than previously traded c. both price ceilings and subsidies create excess demand d. The amount that consumers pay for the good will be greater than they previously paid e. both price floors and excise taxes create excess supply