Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, a decrease in unemployment may be represented by the movement from
A. B to A.
B. C to D.
C. B to D.
D. A to C.
Answer: B
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When decision rights are decentralized, typically
a. decisions are being moved to those with less of the relevant information b. decisions are being moved from those with stronger incentives to make good decisions c. decisions are being moved from those with more of the relevant information d. decisions are being moved from those with weaker incentives to make good decisions
When some benefits are received by those who are not involved in a private transaction, a negative externality occurs
a. True b. False Indicate whether the statement is true or false
A self-managed team is still headed by a boss
Indicate whether the statement is true or false
The thrift institutions:
a. were nonprofit banking institutions. b. were owned by the Federal Reserve. c. historically offered only savings accounts, not checking accounts. d. controlled the U.S. monetary policy prior to the establishment of the Federal Reserve. e. were monitored by the Federal Deposit Insurance Corporation.