If a professional sports athlete signs a new contract which defers compensation until years after she is retired, she is signaling
A) that she does not plan to shirk in the future, regardless of whether she did so in the past.
B) that she did shirk and she will do so in the future.
C) that she did shirk but won't do so in the future.
D) that she didn't shirk and she won't do so in the future.
A
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A nation can produce at a point outside its PPF
A) when it trades with other nations. B) when it produces inefficiently. C) when its PPF is bowed out. D) never.
If the Federal Reserve were to simultaneously sell government bonds in the open market and decrease the discount rate, the
a. money supply will increase. b. money supply will decline. c. money stock will stay the same. d. two tools will work in opposite directions and the effect on the money supply is uncertain.
One major assumption of economics is that people
A) act as if they systematically pursue self-interest. B) behave randomly without any predictable pattern. C) are sometimes rational and sometimes irrational. D) always pursue the interests of others.
Refer to Figure 17.1. Which of these will hold true if the manager is given a budget of $155?
A. She should produce 8 units of output to maximize output for the budget. B. She should try to produce 9 units of output because average costs are minimized. C. She should lobby her boss for more money. D. She should produce 6 units of output because profits are maximized.