Relative to a world in which some people are motivated by nonmaterial incentives, if all people were motivated solely by financial incentives, then:
A. economic efficiency would be achieved more often.
B. there would be no commitment problems.
C. both business transactions and personal interactions would be different.
D. transactions in the business world would be the same, but personal interactions would not.
Answer: C
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The greater the curvature of the isoquant:
a. the greater the degree of substitutability between the inputs. b. the lower the possibility of substitution between inputs. c. the higher the impact of a change in relative prices of inputs. d. the lower the prices of inputs.
A chart of the ratio of national debt to GDP from 1915 to 2014 would show
A. significant increases from 1945 to 1975. B. significant increases during World Wars I and II. C. a larger value in 1975 compared to 1945. D. significant increases from 1995 to 2003.
Supply-side economists contend that the system of taxation in the United States:
A. Creates incentives to save and invest B. Creates dis-incentives to work C. Generates maximum tax revenue D. Reduces the effects of cost-push inflation
A change in the supply of one factor of production
a. can alter the earnings of all of the other factors. b. alters the earnings of capital and labor but not land. c. will not change the marginal productivities of other factors but may change their prices. d. alters the earnings of that factor only.