The insider-outsider model argues that:
a. a firm depends on its insiders to grease the wheels of the organization, to be familiar with routine procedures, to train new employees, and so on.
b. employers will try to keep wages from falling when the economy is weak or the business is having trouble, and employees will not expect huge salary increases when the economy or the business is strong.
c. the productivity of workers will increase if they are paid more, and so employers will often find it worthwhile to pay their employees somewhat more than market conditions might dictate.
d. if an employer increases the wage for all workers, then the best workers with the best employment alternatives at other firms are more likely to leave, while the least attractive workers, with fewer employment alternatives, are more likely to stay.
a
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The trade-to-GDP ratio for a nation that had $600 million in exports, $400 million in imports, and GDP of $2,000 million would be
A) 0.1. B) 0.2. C) 0.5. D) -0.1.
According to agency theory, a financial crisis results from ________ that disrupts the flow of funds from lender-savers to borrower-spenders
A) an increase in asymmetric information B) a macroeconomic shock C) the existence of asymmetric information D) a decrease in saving
General grants come with strings attached
a. True b. False
If a multi-plant firm with market power is maximizing its profits, the price it charges per unit of its product will ________ its ________.
A) equal; overall average cost B) equal; overall marginal cost C) exceed; demand D) exceed; overall marginal cost