Refer to the figure above. Which of the following is likely to happen if a price control below the equilibrium price is imposed?
A) Quantity supplied will exceed quantity demanded.
B) Quantity demanded will exceed quantity supplied.
C) Consumer surplus will decrease.
D) Producer surplus will increase.
B
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Which of the following is a subtle way for a company to reassure their competitors that it is committed to a tit-for-tat strategy?
A. Setting prices below cost B. Price-matching guarantees C. Collusion D. Offering a commitment strategy
Which of the following is not an example of a compensating differential?
a. Chris is a consultant who is paid more than other workers with similar skills because he is required to travel 80% of the time. b. Abby is a teacher who is paid less than other workers with similar skills because she does not have to work during the summer months. c. Ben is a businessman who is paid more than other workers with similar skills because he graduated from a prestigious university with honors. d. Daphne is a skyscraper window-washer who is paid more than other workers with similar skills because of the risk she faces in her daily job.
When an organization provides extras to employees such as free meals and company cars, these incentives are called______.
A. perquisites B. intrinsic rewards C. commissions D. entitlements
Henry George and the single-tax movement believed in all of the following, except:
A. Rental income is unfair because landlords do not really earn it from any productive effort B. Rental income should be taxed heavily, and should be the primary source of revenues for the government C. Taxing rental income would adversely affect allocative efficiency because the tax would change how landlords use their land D. The single-tax on rent would not adversely impact the society's productive efficiency