The delay between when a problem is recognized and when policy action is taken is referred to as the
A) recognition lag.
B) action lag.
C) effectiveness lag.
D) policy lag.
Question 2
If low-quality workers are unable to obtain a college degree, then a separating equilibrium can occur if
A) the cost of obtaining a degree is less than the wage premium paid to those who have obtained the degree.
B) the cost of obtaining a degree is greater than the wage premium paid to those who have obtained the degree.
C) the cost of obtaining a degree is zero.
D) the wage premium paid to those who have obtained the degree is positive.
