Homer changes jobs and his new job pays him a higher income. Before he changed jobs, Homer purchased 3 pounds of tuna and 2 pounds of chicken. After he changed jobs, Homer now purchases 2 pounds of tuna and 3 pounds of chicken. For Homer
A) tuna is a normal good and chicken is an inferior good.
B) tuna is an inferior good and chicken is a normal good.
C) both tuna and chicken are normal goods.
D) both tuna and chicken are inferior goods.
B
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Under which one of the following conditions would a lawyer accept a case on a contingent basis?
A) The lawyer is risk averse. B) The client is risk loving. C) The lawyer has several cases on a contingent basis with payoffs that are not perfectly positively correlated. D) The lawyer is more risk averse than the client is.
Which of the following is true?
a. Incentive compensation imposes no risks on the agents and thus should not affect their compensation b. Incentive compensation imposes risk on the agent but need not be compensated for c. Incentive compensation imposes risk on the agent for which they should be compensated d. Incentive compensation is a bad idea
The pre-Keynesian or classical economic theory viewed the long-run aggregate supply curve for the economy to be:
A. horizontal at the full-employment level of real GDP. B. positively sloped at the full-employment level of real GDP. C. vertical at the full-employment level of real GDP. D. backward bending at the full-employment level of real GDP.
Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. If MR = $9, then in the long run
A. new firms will enter the industry and the current firms will expand production. B. the firm will exit the industry. C. the firm will shut down. D. None of the above is correct.