Examples of incentive pay include
a. allowing employees a certain number of personal days
b. royalties to textbook authors
c. cleaning the worksite with weekly janitorial service
d. offering a certain number of sick days
b
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The Phillips curve summarizes the historical relationship between unemployment and inflation
Indicate whether the statement is true or false
Negative externalities lead markets to produce a smaller quantity of a good than is socially desirable, while positive externalities lead markets to produce a larger quantity of a good than is socially desirable
a. True b. False Indicate whether the statement is true or false
Suppose fairness is defined as those with the highest incomes can afford to pay a greater proportion of their income in taxes. Then which of the following taxation systems would be consistent with this notion of fairness?
a. A true flax tax. b. A flat sales tax on consumption purchases. c. A progressive tax on income. d. A fixed federal tax of $5,000 that everyone pays regardless of income status.
Proponents of the monetary growth rule believe that a constant growth rate in the money supply will lead to less uncertainty and greater credibility than with activist policies
a. True b. False Indicate whether the statement is true or false