In a labor-market pooling equilibrium with high-skill and low-skill workers and where a costly educational degree is used as a signaling device,
A) the high-skill workers' wage is larger than the low-skill workers' wage.
B) the low-skill workers' wage is zero.
C) the high- and low-skill workers receive the same wage.
D) the high-skill workers' wage is equal to the low-skill workers' wage plus the cost of obtaining a degree.
C
Economics
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Which of the following factors affecting decision-making is studied by Behavioral Game Theory?
A) psychological biases B) limited power of calculation C) weather forecast D) A and B are correct
Economics
Refer to the below graph. What is the area that represents the efficiency loss due to the tax?
The graphs below illustrate the market for a product on which an excise tax has been imposed by government.
A. XYT
B. XYZ
C. WXZU
D. WXYZU
Economics