A trend in developing countries is that
a. the birth rate during a typical woman's lifetime has increased from three to six children
b. attitudes toward family size are changing
c. when women have employment opportunities outside the home, fertility rates increase
d. as women become better educated, they earn less
e. as women become less educated, they tend to have fewer children
QUESTION 2The principal-agent problem arises because of
a. natural selection
b. diminishing marginal returns
c. hidden actions
d. the winner's curse
e. hidden characteristics
QUESTION 3Which of the following is not a country that has more people over the age of 65 than under the age of 15?
a. Italy
b. Japan
c. Burundi
d. Germany
e. Portugal
QUESTION 4Suppose the refrigerator repairman charges you for two hours of labor even though he could have fixed it in ten minutes. This is an example of
a. natural selection
b. moral hazard
c. hidden actions
d. external costs
e. hidden characteristics
QUESTION 5Which of the following is a cause of higher birth rates in developing countries?
a. Children are viewed as a source of farm labor
b. Children are viewed as economic and social security as the parents age
c. Higher child mortality rates engender higher birth rates
d. All the answers are correct
e. None of the answers is correct
QUESTION 6Adverse selection is more likely when a job requires intangible or unmeasurable abilities.
a. True
b. False
QUESTION 7If the country of Zorg has a birth rate of greater than 2.2 births per woman, it is likely that Zorg is an industrial market country.
a. True
b. False
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