The problem of production in multi-plant firms with asymmetric information can be solved by paying the manager
A) a piece rate, some constant amount per unit of output produced.
B) a larger amount for each unit than was paid for the previous unit, to reflect increasing marginal cost.
C) a smaller amount for each unit than was paid for the previous unit, to reflect decreasing marginal revenue.
D) an annual bonus that increases with each unit of output up to capacity, and decreases with each unit of output past capacity.
E) an annual bonus that is calculated decreases with each unit of output up to capacity, and increases with each unit of output past capacity.
D
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An increase in the real interest rate would cause an increase in the real demand for money
A) no matter what the change in expected inflation. B) if expected inflation fell by less than the rise in the real interest rate. C) if expected inflation fell by the same amount as the rise in the real interest rate. D) if expected inflation fell by more than the rise in the real interest rate.
______ is the measure of economic performance based on the value of all final goods and services produced within a nation during a given period.
a. GNP b. GDP c. NI d. PI
Almost all of the immigrants into the United States are uneducated.
Answer the following statement true (T) or false (F)
Revealed preference is:
A. the notion that people reveal the utility they get by reporting it on a numerical scale. B. the method that psychologists, anthropologists, and economists use to measure utility. C. the idea that people's preferences can be determined by observing their choices and behavior. D. All of these are true.