Refer to Figure 10.9. Other things equal, a decrease in the nominal money supply by the Fed is best represented as a change in equilibrium from

Suppose you can type a paper in two hours or mow the lawn in four hours, while it takes your friend Gabriela eight hours to type a paper or two hours to mow the lawn. Which of the following is true?

a. You have a comparative advantage in typing. b. You have a comparative advantage in mowing the lawn. c. You and Gabriela could save time if you mowed her lawn while she typed your paper. d. You and Gabriela cannot gain from specialization and trade.

Imogene needs to hire a skilled worker to do some very difficult analysis work for her company. When she interviews, she talks only to individuals who have a graduate degree. What is the purpose of Imogene’s use of the education signal?

a. to lower her costs in finding a worker b. to allow any interested party to know about the job c. to let people know she is highly educated d. to prevent the lemon problem from discouraging applicants