One reason why firms would choose a salary system rather than a commission compensation system is that their employees might become less concerned about the quality of their work
Indicate whether the statement is true or false
TRUE
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The ________ demonstrates the roles played by households and firms in the market system
A) theory of comparative advantage B) business cycle C) circular flow model D) production possibilities frontier
Which of the following is not a property of a competitive equilibrium?
A) markets clear. B) consumers and firms optimize given market prices. C) the government budget constraint is satisfied. D) increasing total factor productivity.
If a price floor of $23 were placed in the market in the graph shown, which area represents deadweight loss?
A. C + F
B. C + D + F
C. G
D. B + C + E + F
An employer would never operate on the upward-sloping part of an MRP curve because
a. he would not be maximizing profits. b. he would be hiring workers at wages above MRP. c. the number of workers is too large to get economies of scale. d. he would then have too little capital per worker.