Which of the following is an example of signaling?
a. Pat is considering the purchase of a used car. Before making the purchase he has the car checked by an auto mechanic.
b. Zach is applying for a new life insurance policy. Before writing the policy, the insurance company requires Zach to be examined by a doctor.
c. Denise is applying for a new job. Before hiring her, the firm requires Denise to take a drug test.
d. Marcus is planning to ask for Chaquila's hand in marriage. Before asking her, he buys her a box of her favorite chocolates and takes her to dinner at her favorite restaurant.
d
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The ultimate objective of macroeconomics is to: a. reduce the unemployment rate in an economy
b. stabilize the growth rate in an economy. c. develop and test theories about how the overall economy works. d. improve the international competitiveness of U.S. financial markets. e. maximize the efficiency of government intervention in the marketplace.
Mixster Concrete Company is considering buying a new cement truck. The owners and their accountants decide that this is the profitable thing to do. Before they can buy the truck, the interest rate and price of trucks change. In which case do these changes both make them less likely to buy the truck?
a. Interest rates rise and truck prices rise. b. Interest rates fall and truck prices rise. c. Interest rates rise and truck prices fall. d. Interest rates fall and truck prices fall.