Which of the following is an example of a compensating differential?
a. Two workers with different levels of on-the-job training earn different salaries.
b. Two workers whose jobs entail different working conditions earn different salaries.
c. Two workers whose jobs require different levels of technical expertise earn different salaries.
d. Two workers with different levels of natural ability earn different salaries.
b
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If the price level increases,
A) the buying power of your checking accounts rises with it. B) the economy tends to grow faster. C) there is no effect on buying power. D) the buying power of your checking account falls.
A firm might prefer to choose a salary system rather than a commission or piece-rate system of compensation when there are concerns about output quality
Indicate whether the statement is true or false
Blutarsky is throwing a party at his Fraternity and is trying to choose what booze to buy. A bottle of vodka has four times the alcohol as a six-pack of beer
If Blutarsky only cares about the total amount of alcohol in his basket, what is his marginal rate of substitution of bottles of vodka for six-packs of beer? Devise a utility function to represent these preferences.
A. tendency for policies with high short-run benefits to have high long-run costs. B. fallacy that what is true for the short run must be true for the long run. C. tendency to regularly misjudge in the present what you will do in the future. D.
tendency to misjudge how long it will take to accomplish a future task. A. Time inconsistency. B. Availability heuristic. C. Self-serving bias. D. System 2 processes dominating decision making.