Gilda's Art Gallery rewards its employees with stock each year the gallery makes profits. This stock allows the employees to own part of the gallery. This practice is known as
A) the principle-agent problem.
B) incentive pay.
C) minimizing implicit costs.
D) minimizing explicit costs.
B
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When private ownership rights are well-defined and enforced, owners
a. can ignore the wishes of others, without bearing the cost. b. have little incentive to take care of things. c. can do anything they want with their property. d. can be held accountable for damage to others through misuse of their property.
In 2012, real GDP in the United States was below potential GDP. This fact definitely means that
A) the unemployment rate was near 10 percent. B) the unemployment rate was above the natural unemployment rate. C) the economy was in an expansion. D) cyclical unemployment had been decreasing. E) frictional unemployment was negative.
Describe how a firm that sells only one brand of bleach may be able to increase its profit if it re-labels some of its bleach
What will be an ideal response?
Rent controls are examples of which of the following?
a. price ceilings b. price floors c. equilibrium prices d. subsidies