The real-nominal principle can be stated as
A) only final goods and services should be counted in GDP.
B) only the manufacture of real goods is production.
C) what matters to people is the purchasing power of money or income.
D) production generates income.
C
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A takeover of one firm by another
A. ties up the nation’s capital wastefully. B. uses up the economy’s credit supply. C. reduces the value of the acquired firm. D. changes the ownership of the acquired firm.
If the electric company is allowed by regulators to earn only a normal profit, it will produce at the point where
a. MR = MC b. P = MC c. MC = quantity demanded d. P = AC e. MR = AC
The goal of a performance pay system is to get an employee to meet and exceed production quotas or goals. But an employee is always faced with events that are clearly beyond his/her control. What measures can be taken by the management to understand and minimize the impact of these ‘random' elements in the production system?
What will be an ideal response?
A firm manager with vertical indifference curves (output on the horizontal axis, profit on the vertical axis) views:
A. both profits and outputs to be "goods." B. only output to be "goods." C. only profits to be "goods." D. None of the statements is correct.