A payday loan company has decided to open several new locations in the city. To decide where to open these locations it hires consultants and pays them per store opened. At the end of the quarter, the company notices a many of the new stores' sales volume fail to meet expectations. To incentivize the consultants to instead focus on opening profitable stores, the company should have paid them
a. Per store opened
b. A percentage of the profit earned per new store
c. A fixed salary
d. All of the above
b
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An increase in the quantity of loanable funds demanded occurs when
A) wealth decreases. B) the expected profit rises. C) the real interest rate rises. D) the supply of loanable funds decreases. E) the real interest rate falls.
If the government levies a $5 tax per MP3 player on buyers of MP3 players, then the price paid by buyers of MP3 players would likely
a. increase by more than $5. b. increase by exactly $5. c. increase by less than $5. d. decrease.
If a business finds its production is becoming more efficient as it increases production, the organization is experiencing what specialization advantage?
Which of the following assets are counted in M1?
A. transaction deposits B. line of credit C. bonds D. mutual funds accounts