Author Question: Even if your college degree is irrelevant to an employer's needs, your high GPA might still get you ... (Read 234 times)

Starlight · **on:** Jun 29, 2018

Even if your college degree is irrelevant to an employer's needs, your high GPA might still get you the job because

A) the firm is not a profit maximizer.
B) your GPA sends a signal about your quality as a worker.
C) the firm will most likely make an adverse selection.
D) the high GPA eliminates the possibility of moral hazard.

Question 2

A perfectly competitive market is in long-run equilibrium. Then demand decreases. The decrease in demand leads to

A) a rise in the price in the short run.
B) the firms' incurring an economic loss in the short run.
C) firms entering the market in the long run.
D) none of the above