Question

Question 1

Suppose that every customer in a market wants to enjoy the good supplied by the best producer, and the good is produce with technology such that the best producer can supply to every customer at a low cost. This is an example of

Answers:

the superstar phenomenon.

human capital.

efficiency wages.

signaling.

Question 2

The larger the number of firms in an oligopoly, the

Answers:

lower the price and the smaller the output of the industry.

higher the price and the greater the output of the industry.

lower the price and the greater the output of the industry.

higher the price and the smaller the output of the industry.

Question 3

Signaling in labor markets and advertising are examples where an informed party uses the signal to convince the uninformed party that the informed party is offering something of high quality.

Answers:

True

False

Question 4

Discrimination in the labor market occurs when employers pay different wages to workers who differ only by race, ethnicity, sex, age, or other personal characteristics.

Answers:

True

False

Question 5

A strategy that is best for a player in a game regardless of the strategies chosen by the other players is called a(n)

Answers: 

game theory strategy.

dominant strategy.

prisoner's dilemma strategy.

oligopoly strategy.