Discounting is a procedure used to
a. determine the present value of income or costs expected in the future.
b. adjust future income for the effects of inflation.
c. adjust the money interest rates for the effects of inflation.
d. compare the value of income after taxes with its value prior to taxes.
A
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In organizational design issues, decision rights pertain to
a. the legal workplace related rights of employees b. the regulations governing how a potential customer chooses which product to purchase c. the set of decisions that go with a particular position within the firm d. who gets to decide from which place co-workers will order lunch
Given a typical demand curve and a decline in price, the consumer who wishes to maximize total utility must increase the quantity purchased of a good to arrive at an optimal MU = P point
a. True b. False Indicate whether the statement is true or false
Suppose that a large tornado destroys the fleet of fire trucks for the city of Omaha, Nebraska. What happens to the earnings of firefighters in Omaha?
a. The reduction in the supply of fire trucks reduces the marginal productivities of Omaha firefighters, which causes the equilibrium wage to fall. b. The reduction in the supply of fire trucks increases the marginal productivities of Omaha firefighters, which causes the equilibrium wage to fall. c. The reduction in the supply of fire trucks reduces the marginal productivities of Omaha firefighters, which causes the equilibrium wage to rise. d. The reduction in the supply of fire trucks increases the marginal productivities of Omaha firefighters, which causes the equilibrium wage to rise.