If grades are to be a successful signal to potential employers of a student's qualities, then higher grades must be
A) easier for high-productivity students to earn than for low-productivity students to earn.
B) easier for low-productivity students to earn than for high-productivity students to earn.
C) easy for employers to check.
D) used for all future promotions within the firm.
E) often referred to in the hiring process.
A
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Price cap regulation involves
A) setting the monopoly's price equal to its average total cost. B) setting the monopoly's price equal to its profit-maximizing price. C) setting a maximum price the monopoly may charge. D) assuming a natural monopoly will not charge a higher than profit-maximizing price. E) setting the monopoly's price equal to its marginal cost.
Everything else held constant, a decline in interest rates will cause spending on housing to
A) fall. B) remain unchanged. C) either rise, fall, or remain the same. D) rise.