Under a profit-sharing compensation scheme, the manager will:
A. not shirk all day.
B. optimize his choice between income and leisure.
C. shirk all day.
D. do the same thing as under a fixed salary scheme.
Answer: B
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Real-world applications of deposit-refund systems include
a. programs implemented through state bottle bills b. initiatives aimed at proper disposal of lead-acid batteries c. programs that create incentives to return scrapped vehicles d. all of the above e. none of the above
Plants, trees, and soils naturally emit carbon dioxide (CO2 ) that enters the atmosphere
To form a benchmark level for this greenhouse gas, we can determine the amount of CO2 that would end up in the atmosphere if there were no human activity on the planet. Suppose naturally occurring CO2 emissions are 5 million tons per year, the social discount rate is 5%, and the stock dissipation rate is 2%. What is the eventual level of CO2 in the atmosphere if these natural emissions continue at this rate forever? A) 100 million tons B) 250 million tons C) 25 million tons D) We do not have enough information to answer this question.
The time it takes for Congress to deliberate over a specific fiscal policy action is an example of
A. A multiplier conflict. B. A design problem. C. A measurement problem. D. An implementation problem.
What is an example of a positive external shock to aggregate supply?
(A) China announces that it will import 50 percent more corn from the United States. (B) Demand for new suburban houses increases the value of farmland. (C) Good weather leads to an unusually productive harvest for corn farmers. (D) A popular new diet encourages consumers to buy more corn flakes.