The components of a well-run incentive compensation scheme include all of the following EXCEPT
a. evaluating the identified performance measures
b. avoiding rewards for outcomes that are not included in the performance measures
c. rewarding workers who for meet performance measures
d. displaying the wealth disparities between the executives and the line workers
d
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If the price of a movie rises 3 percent and, as a result, the quantity demanded of video rentals increases 6 percent, then the cross elasticity of demand is
A) 2. B) 1/2. C) -1/2. D) -2. E) 9.
In 2012 a severe drought raised the price of corn. For a farmer in Canada who harvested a normal crop because the farm was not affected directly by the drought, the increase in the price of corn
A) increases the farmer's producer surplus. B) decreases the farmer's producer surplus. C) does not affect the producer surplus because this change is a movement along the farmer's supply curve and not a shift of the farmer's supply curve. D) increases producer surplus only if the farmer's supply is completely inelastic.
The Fed attempts to affect the level of borrowed reserves by
A) changing the discount rate. B) changing legal reserve requirements. C) open market sales. D) open market purchases.
Refer to the above table. What is the market quantity demanded of DVDs at a price of $12?
A) 6 B) 9 C) 12 D) 24