If initially an individuals' compensation is less than their productivity but the reverse is true, the individual
A) will free-ride late in their career.
B) has an incentive to leave the firm.
C) has an incentive to stay with the firm.
D) none of these choices.
C
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In the United States, who determines the combination of bond and money creation that finances the federal budget deficit?
A) the federal government itself B) the Federal Reserve C) the private banking system D) private bond- and money-holders
Global technologies, such as electronics, have made up a significant portion of the recent wave of manufacturing offshoring
Indicate whether the statement is true or false
You are engaged in a debate with a behavioral economist who argues that the philosophy of traditional economics is based on a lie: that all consumers are rational. He argues that since all consumers are sometimes irrational, all of the principles of traditional economics must be thrown out. How would you refute his claim? Identify at least one way consumers behave irrationally and at least one way that a principle of traditional economics can still be successfully applied to consumers.
What will be an ideal response?