Symbols used by the leaders in an organization are unlikely to be effective in motivating employees to take particular actions unless reinforced by:
A. the government.
B. the shareholders.
C. the reward system.
D. the board of directors.
Answer: C
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An upward shift of the planned expenditure curve resulting from a decrease in the price level corresponds to
A) aggregate demand shifting to the left. B) a movement up along the aggregate demand curve. C) a movement down along the aggregate demand curve. D) aggregate demand shifting to the right.
Ricardian equivalence argues that when the government
A) increases taxes and raises its deficit, consumers anticipate that they will face higher taxes later to pay for the resulting government debt, thus people will raise their own private saving to offset the fall in government saving. B) cuts taxes and decreases its deficit, consumers anticipate that they will face higher taxes later to pay for the resulting government debt, thus people will raise their own private saving to offset the fall in government saving. C) cuts taxes and raises its surplus, consumers anticipate that they will face higher taxes later to pay for the resulting government debt, thus people will raise their own private saving to offset the fall in government saving. D) cuts taxes and raises its deficit, consumers anticipate that they will face lower taxes later to pay for the resulting government debt, thus people will raise their own private saving to offset the fall in government saving. E) cuts taxes and raises its deficit, consumers anticipate that they will face higher taxes later to pay for the resulting government debt, thus people will raise their own private saving to offset the fall in government saving.
When a group of countries agree to share a common currency, they are said to have formed a
A) currency union. B) welfare state. C) monetary alliance. D) monetary cartel.
Behavioral economists have found that:
A. only market prices matter when people make decisions. B. people are always irrational when considering incentives. C. markets are the best way to organize mutually beneficial exchanges. D. design mechanisms must take social factors as well as price into account.