Which of the following is an outside incentive that forces managers to put forth maximal effort?
A. Reputation
B. Incentive contracts
C. Flat fees
D. Performance bonuses
Answer: A
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Property rights assure people that
A) the government will not confiscate their income or savings. B) the government will provide a minimum standard of living. C) the factors of production and goods are owned jointly by the government and the people. D) economic growth will enhance government involvement in the economy. E) international trade will be limited.
When the inflationary gap is finally eliminated, a long-run equilibrium is established with a ____ price level and with GDP ____ potential GDP
a. higher; equal to b. higher; greater than c. lower; equal to d. lower; greater than
Refer to Exhibit 2-4. The opportunity cost of moving from point A to point B is
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When Fed policy is being used to offset an inflationary gap, which of interest rates, investment, net exports and aggregate demand moves in the opposite direction from the others? a. Aggregate demand. b. Investment
c. Net Exports. d. Interest rates.