Cheap talk works at placing workers in the right job as long as
A) the interests of the worker and the firm coincide.
B) all workers want the most demanding jobs regardless of their abilities.
C) workers have different ability levels that are unknown to firms.
D) firms are not profit maximizers.
A
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A bond issuer agrees to pay a stated nominal amount each year. An increase in the nominal interest rate will cause
A) the price of the bond to fall. B) the price of the bond to rise. C) the nominal value of the bond's coupon to rise. D) the nominal value of the bond's coupon to fall.
Suppose capital and labor must be used in fixed proportions to produce widgets and that the price elasticity of demand for widgets is zero. Then the wage elasticity of demand for labor by widget makers will be
a. +1. b. ?1. c. 0. d. infinite.