The parity principle stems from
a. a manager delegating a task
b. union pay negotiations
c. one-way communication
d. none of the above
Ans: a. a manager delegating a task
You might also like to view...
If supply of a product increases and demand for the product decreases, equilibrium price will definitely change
Indicate whether the statement is true or false
According to New Keynesian theory, fluctuations in the target interest rate are not a good explanation of the business cycle because the model predicts that
A) consumption is constant. B) labor is countercyclical. C) average labor productivity is countercyclical. D) output is countercyclical.
Two heavy equipment manufacturers might collude in an effort to do all of the following except one. Which is the exception?
a. determine a more advantageous price and quantity b. prevent new entry into the market c. take advantage of the legal benefits that U.S. cartels receive d. increase their combined profits e. predict the behavior of other competitors in the heavy equipment market with greater certainty
When producers operate in a market characterized by negative externalities, a tax that forces them to internalize the externality will
a. give sellers the incentive to account for the external effects of their actions. b. increase demand. c. increase the amount of the commodity exchanged in market equilibrium. d. restrict the producers' ability to take the costs of the externality into account when deciding how much to supply.