Dan Heath is the owner of Plain Truth Advertising. He is attempting to design salary systems for his employees, most of whom are sales agents. To get a good system, he needs to recognize the trade-offs between:
A. benefits and salaries.
B. benefits and incentives.
C. risk-sharing and incentives.
D. risk-sharing and benefits.
Answer: C
You might also like to view...
In the period 1960–95, the cycles of upturns and downturns in the economy (booms and recessions)
(a) were eliminated as knowledge of how the economy operated grew. (b) continued to occur, although not nearly as severely as prior to World War II. (c) grew even worse than prior to World War II. (d) were equally as bad as the period prior to World War II.
Suppose that a non-discriminating monopolist lowers its price from $75 to $70 in order to sell more output. Marginal revenue will
a. equal $75 b. equal $70 c. be between $75 and $70 d. be less than $70 e. be greater than $75
The consumer price index was 225 in 2006 and 236 in 2007. The nominal interest rate during this period was 6.5 percent. What was the real interest rate during this period?
a. 1.6 percent b. 4.9 percent c. 6.82 percent d. 11.4 percent
The government sometimes creates an excess demand for a product by setting a maximum price at which the product may be sold to consumers. This is sometimes called a:
A. price ceiling. B. price floor. C. tax. D. subsidy.