Relative to a world in which some people are motivated by nonmaterial incentives, if all people were motivated solely by financial incentives, then:
A. both business transactions and personal interactions would be different.
B. transactions in the business world would be the same, but personal interactions would not.
C. there would be no commitment problems.
D. economic efficiency would be achieved more often.
Answer: A
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Refer to Figure 2-5. If the economy is currently producing at point W, what is the opportunity cost of moving to point Y?
A) 2 million tons of paper B) 2 million tons of steel C) 14 million tons of steel D) 9 million tons of paper
If the price of a good falls, the marginal utility per dollar spent on that good
a. also falls b. stays the same c. rises d. will rise or fall, depending on the consumer e. remains unchanged, provided the consumer buys no more of the good
A firm in a competitive price-searcher market can raise its price without losing all of its customers. This is a result of
a. low entry barriers. b. a perfectly elastic market demand. c. the small number of firms in the market. d. product differentiation.
The Federal Reserve Bank of Minneapolis once chartered a small airplane to deliver money to a commercial bank that was experiencing a "mad run" on the bank
Indicate whether the statement is true or false