A restaurant owner hires a waiter to serve food to customers and clear the tables. The owner wants the waiter to be prompt in bringing out the food and clearing the table once the guests are finished with their meal. The waiter is paid a salary and cannot accept tips. The waiter would prefer to check their Facebook account and take their time waiting the tables. If the waiter does spend
considerable time checking their Facebook while the owner is not at the restaurant, the owner can motivate the waiter to be prompt waiting tables (and stop checking Facebook) in each of the following ways except which one?
A) Lower the waiter's salary, but allow the waiter to earn a percentage of the restaurant's profit.
B) Lower the waiter's salary, but pay the waiter a bonus based on the number of tables served in an evening.
C) Lower the waiter's salary, but allow the waiter to collect tips from customers.
D) Offer the waiter a higher salary.
D) Offer the waiter a higher salary.
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Other things equal, it can be concluded that in Figure 6-1, that
A. D1 is the more elastic demand curve than D2, but only below P2. B. D1 is the more elastic demand curve than D2. C. D1 is the less elastic demand curve than D2. D. D1 is the more elastic demand curve than D2, but only above P2.
A speculative attack on an overvalued currency leads to a(n) ________ in international reserves and a(n) ________ in the fundamental value of the currency.
A. increase; decrease B. increase; increase C. decrease; decrease D. decrease; increase
M1 includes which of the following?
A. Checking account deposits B. Gold certificates C. Money market mutual funds D. Time deposits
Suppose the demand curve for movie tickets has unitary price elasticity and the supply curve is perfectly price elastic. If 3 million tickets are currently sold at a price of $5, approximately how much tax revenue could the government generate from a $1 specific tax?
A) $18 million B) $3 million C) $2.7 million D) $1.5 million