The dean of a large university issues the following policy for faculty pay-raises in the smaller satellite campuses: faculty pay increases will be possible only if enrollment increases above last year's targets. Evaluate the impact of this policy on the overall system.
What will be an ideal response?
Faculty members are not trained in admissions, counseling, financial aid, retention, enrollment, and student services. Since faculty members are not responsible for enrollment, they have no control on actual output, or the number of students enrolled. But the moment their wages are tied to something they cannot control, they might develop strong disincentives to perform the tasks they specialize in. Consequently, faculty members will end up shirking at work. Basically, this boils down to the fact that the dean and the board of directors are themselves not totally committed to developing a community of educated citizens, but are only interested in the total revenues generated, so as to cash in on the proceedings.
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In bank regulation in the United States there is a strong emphasis on
A) maximizing depositor returns. B) limiting depositor returns. C) maximizing depositor risk. D) limiting depositor risk.
If a currency union provides more to its members than a common currency unit, such as fiscal transfers or fiscal federalism, it would make joining that union:
A) less costly. B) more beneficial. C) yield higher net benefits. D) less costly, more beneficial, and yield higher net benefits.
Supermodel Linda Evangelista has been quoted as saying, "[I] don't wake up for less than $10,000 a day." If Ms. Evangelista is paid $15,000 for her next daylong photo shoot, then
A) she is being paid $15,000 to cover her opportunity cost. B) the first $10,000 she receives is economic rent to labor and the next $5,000 is more economic rent. C) the entire $15,000 would be considered economic rent to labor. D) she is receiving economic rent to labor equal to $5,000.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, an increase in unemployment may be represented by the movement from
A. B to A. B. A to C. C. C to D. D. B to D.