The market wage rate for a car mechanic is $30 per week. Peter, who owns a garage, is in urgent need of a mechanic to head his existing employees. He is willing to hire Alex and pay $8 extra in order to make sure that Alex puts in his best efforts. If Alex accepts the job, which of the following statements will be true?
a. There is no disutility of hard work for Alex as his pay exceeds the market wage rate.
b. Alex has no incentive to put in his best efforts on this job.
c. Alex's disutility of extra effort in this new job is less than the utility from extra pay.
d. Peter's benefit from hiring Alex will be limited as he is paying above the market wage rate.
C
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Financial intermediaries emerged
A) to make loans to governments. B) to provide a market for municipal bonds. C) to reduce transactions costs for small savers and borrowers. D) to reduce transactions costs for traders in stocks and bonds.
As the U.S. economy recovers from the recession of 2007-2009, stubbornly high unemployment is a concern. For each of the three business cycle models, identify the appropriate policy regime
What will be an ideal response?
How many members appointed by the president sit on the Federal Reserve Board?
A. None B. Seven C. Nine D. Twelve
Entrepreneurs care about:
A. only themselves. B. profits and solving problems. C. profits and prices. D. only profits.