An employee who has worked with only one organization all her life, and is now close to her retirement age, is unlikely to find an equally profitable position with another company because:
a. her productivity is very low.
b. her firm-specific capital is of little use to other organizations.
c. other organizations can not verify her previous work record.
d. her preference for leisure is likely to be very high.
B
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When there is a change in the quantity demanded it means that
A) the selling price of the products has not changed. B) the number of products in inventory have increased. C) the hours the customer can buy products each day have increased. D) the quantity a consumer is willing to buy changes when the price changes.
The Social Security system is a pure income transfer program, financed on a pay-as-you-go basis
Indicate whether the statement is true or false
Economics is primarily the study of
a. how to make money in the stock market. b. how to find lower cost methods of production. c. the choices we must make among alternatives because of scarcity. d. the proper form of industrial structure for the United States.
Regulatory capital arbitrage is a means of
A) using borrowed funds to increase the returns that can be earned with a given amount of capital. B) specifying the amount of capital that financial institutions should hold based on the riskiness of their different assets. C) determining mortgage rates for sub-prime borrowers. D) changing the composition of assets in such a way as to lower the overall amount of capital a financial institution holds for a given level of assets.