Giving managers an ownership stake in a company is an example of
A) a command system.
B) an incentive system.
C) a system that encourages managers to become agents that monitor their principals.
D) economies of scope.
B
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Over the most recent movements from cyclical peak to trough, 1990: Q3 to 1991: Q2, gross private domestic investment ________ approximately ________ percent
A) fell, 40 B) rose, 5 C) fell, 11 D) rose, 22
Foreign exchange market intervention is most effective when:
a. each country's political leaders agree to cooperate fully with the process. b. leading economists in each country believe that intervention is needed. c. permanent differences between the free market exchange rate and the fixed exchange rate are expected. d. temporary differences between the free market exchange rate and the fixed exchange rate are expected. e. all the countries restrict the international movement of goods and services.
Higher costs result from a currency union when:
A) nations are economically dissimilar so that demand shocks affect each economy asymmetrically. B) nations are economically similar so that demand shocks affect each economy symmetrically. C) there is intense competition between the economies. D) the currency is pegged to the U.S. dollar.
With a tax of zero dollars, equilibrium occurs at
Suppose the supply of labor is W – t = 10H, where W is the gross wage, t is the tax (in dollars), and H is labor hours. The demand for labor is W = 120 – 2H. a) H = 10, W = 100 b) H = 9, W = 90 c) H = 8, W = 80 d) H = 7, W = 70 e) H = 6, W = 60