A critical component of supply-side economics is that
a. there is no wage that is so low that someone will not be willing to work for it.
b. as the wage gets higher, workers choose significantly less leisure.
c. labor supply is inelastic.
d. as the wage gets higher, workers are richer and choose more leisure.
B
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Which of the following is operating income?
A) stockholders' equity B) explicit plus implicit costs C) net profit D) revenue minus operating expenses
Under perfectly competitive conditions, marginal revenue is
a. greater than average revenue. b. equal to average revenue. c. less than average revenue. d. equal to the average variable cost.
Companies often find it to be more profitable to use a commission or piece-rate system of compensation rather than a salary system, yet many firms continue to pay their workers salaries
List three reasons why a firm would choose a salary system of compensation.
The Federal Reserve finances its credit policy with
A. funding from the U.S. Treasury Department. B. reserve deposits that private banks hold with the Fed. C. borrowing from the federal government. D. the insurance premiums collected by the FDIC.