Which if the following is a key difference between profit-oriented institutions (such as small businesses) and non-profit institutions (such as governments, hospitals, or schools)? Profit-oriented institutions
A) are usually competitive rather than cooperative.
B) have a recognized residual claimant.
C) pursue private interests rather than the public interest.
D) rely on monetary incentives to secure the cooperation required for their functioning.
E) work through market processes.
B
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Refer to Figure 17-6. Under Scheme I
A) workers signal their productivity to the firm by consistently selling above 30 vacuum cleaners. B) the incentive to increase productivity only occurs for sales of fewer than 20 vacuum cleaners or more than 30 vacuum cleaners. C) workers compete with each other to see who can sell more than 20 vacuum cleaners in the shortest possible time. D) workers have no incentive to sell more than 30 vacuum cleaners.
Which of the following is not a characteristic of the classical system?
a. temporary excess demand and supply in labor markets. b. Price flexibility c. Money wage flexibility d. real values, not nominal values, matter
Which of the following is an example of U.S. foreign direct investment and by itself increases U.S. net capital outflow?
a. A Swedish bank buys a bond issued by the U.S. government. b. A German company builds a car factory in the U.S. c. A U.S. mutual fund purchases stock issued by a corporation in Bolivia. d. A U.S. grocery chain builds and operates a new warehouse in Honduras.
Refer to Figure 6.6, which shows a market for taxi medallions. Without any limit to the number of medallions (taxi licenses), the consumer surplus from consuming taxicab services is represented by:
A. area ABF. B. area ACI. C. area DEH. D. area CEI.