The components of a well-run incentive compensation scheme include all of the following EXCEPT
a. performing random acts of kindness to employees
b. avoiding rewards for outcomes that are not included in the performance measures
c. rewarding workers who for meet performance measures
d. identifying the relevant measures on which to evaluate employees
a
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
The problem of "asymmetric information" is that the
A) lender knows more than the borrower. B) borrower knows more than the lender. C) borrower and lender have different goals. D) borrower and lender know the future much less than they do the present.
Many U.S. business leaders argue that the current state of U.S. net exports is the result of
a. U.S. export subsidies. b. free trade policies of foreign governments. c. unproductive U.S. workers. d. unfair foreign competition.
The invisible hand principle indicates that when individuals are directed by prices determined in competitive markets, their actions will tend to promote the efficient use of resources
A) even when each market participant cares only about their own self interest rather than the overall efficiency of resource use. B) even if business firms fail to produce goods efficiently. C) only if buyers and sellers personally care about economic efficiency. D) if, and only if, businesses recognize their social obligation to keep costs low and use resources wisely.