A reduction in the user cost of capital leads firms to ________ their profit by ________ their capital-output ratio
A) raise, increasing
B) raise, decreasing
C) lower, increasing
D) lower, decreasing
A
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Which of the following represents the relationship between disposable income (DI), consumption (C), and saving (S)?
A) DI = C * S B) DI + C = S C) DI = C - S D) DI = C + S
Explain why wage and salary income differs among individuals
What will be an ideal response?
Under perfect competition, the firm must decide
A) the best price to charge for its product. B) the best rate of output it should produce. C) the optimal level of advertising to engage in. D) the optimal level of quality and the packaging that will maximize profits.
To keep employees from shirking, you can invest in greater monitoring
a. even though monitoring is expensive b. especially when monitoring is not very efficient c. when employees respond well to incentive contracts d. when incentives fail to solve either moral hazard and adverse selection problems with employees