A solution to the budget-gaming problem is
a. Introduce milestones or kinks in the compensation scheme
b. Use a target based pay function with each target scoring greater return
c. Do not base compensation on meeting a particular budget goal
d. All of the above
c
You might also like to view...
Everything else held constant, when actual output exceeds the natural rate of output ________ aggregate supply ________
A) short-run; decreases B) short-run; increases C) long-run; increases D) long-run; decreases
A kinked demand curve is most likely to occur when other firms
a. follow any change in price by a rival firm. b. engage in collusive practices. c. follow a downward change in price but not an upward change by a rival firm. d. ignore any change in price by a rival firm.
When a tax is levied on buyers, the
a. supply curves shifts upward by the amount of the tax. b. tax creates a wedge between the price buyers effectively pay and the price sellers receive. c. tax has no effect on the well-being of sellers. d. All of the above are correct.
Ceteris paribus, which of the following will cause the supply of paper to decrease?
A.) The price of lumber, an ingredient in paper production, increases. B.) The federal government decides to subsidize the production of paper. C.) People rely more on electronic books and less on printed materials. D.) The technology used to produce paper improves.