The following is NOT an example of a potential monitoring solution to moral hazard
a. blocking social network sites on company computers
b. closed circuit TVs throughout a warehouse
c. GPS tracking devices in repair trucks
d. requiring physicians to be 'board certified'
d
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What is the Coase theorem
What will be an ideal response?
Which of the following statements about the underground economy is true?
A) Most transactions that occur in the underground economy are included in the calculation of GDP. B) Excluding underground economy production from measured GDP causes errors in GDP growth estimates in the long run. C) Income that is earned but not reported as income for tax purposes is included in the calculation of GDP. D) The underground economy in developing countries amounts to less than 10% of measured GDP.
The above figure shows a graph of a market for pizzas in a large town. At a price of $7, what is the amount of excess demand?
A) 0; there is excess supply at $7. B) 20 units C) 30 units D) 10 units
Supplier power tends to be higher when
a. Suppliers are concentrated b. There are high costs to switching between suppliers c. Both A&B d. None of the above