A good salesperson can sell $500,000 worth of goods, while a poor one can sell only $100,000 worth of goods. Job applicants know if they are good or bad, but the firm does not
A firm will offer job applicants a choice between a fixed salary of $10,000 or a 10% commission. Assuming risk-neutral salespersons and no opportunistic behavior, can the firm determine a prospective good salesperson from a poor one? A) Yes, because a poor salesperson will always choose the fixed salary.
B) Yes, because a good salesperson will always choose the fixed salary.
C) No, because a poor salesperson is indifferent between the two contracts.
D) No, because a good salesperson is indifferent between the two contracts.
C
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A market structure in which two firms control the market is a
a. monopoly. b. monopolistic competition. c. perfect competition. d. duopoly.
When the Fed pursues a monetary policy of low interest rates, the exchange rate between the dollar and other currencies will tend to ________, generally making it ________ for foreign firms to sell their goods in the United States
A) rise; easier B) rise; more difficult C) fall; easier D) fall; more difficult
Economists can illustrate an uneven distribution of income by sketching a Lorenz curve that lies above the diagonal
a. True b. False Indicate whether the statement is true or false
Which theorists see international law as an expression of shared norms and common purpose, where each state has the interest of being known as a law-abiding member?
a. economic structuralists b. realists c. feminists d. constructivists