How does a residual claimant help to resolve the problems faced by independent specialized workers?
A residual claimant with supervisory powers can resolve the difficulties independent workers have in arriving at choices that affect the entire group. Such problems arise because the workers have different investment responsibilities for their equipment, different attitudes toward risk, and differing beliefs about a new strategy's probability of success. For example, a boss/residual claimant decides (possibly with advice from others) whether to begin producing safety pins. Having made the decision she may hire or terminate workers, change their assignments, and replace existing capital goods with equipment better suited for safety pin manufacture. She is the logical person to make this decision because as residual claimant she has the greatest incentive to make a correct choice.
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A good measure of the standard of living is
A) total real GDP. B) real GDP per capita. C) total nominal GDP. D) nominal GDP per capita.
The purchase of foreign currency by a central bank will tend to cause ________
A) an appreciation of the domestic currency B) a depreciation of the domestic currency C) an increase in the value of foreign exchange, but no change in the value of the domestic currency D) a decrease in the value of foreign exchange, but no change in the value of the domestic currency
Movie theatres decided to increase the price of movie tickets. Holding other factors constant, what happens to the demand for popcorn in the movie theatres?
a. Demand for popcorn shifts to the left because popcorn and movies are substitute goods. b. Demand for popcorn shifts to the left because popcorn and movies are complementary goods. c. Demand for popcorn shifts to the right because popcorn and movies are substitute goods. d. Demand for popcorn shifts to the right because popcorn and movies are complementary goods.
According to the KOF Swiss Economic Institute's globalization indices for the world, globalization
A) has been on a downward trend. B) has been constant since 1970. C) was on an upward trend in the 1970s and 1980s, but has more recently been on a downward trend. D) has been on an upward trend.