At Always Round Tire, managers and professional employees are evaluated each year with the Subjective Information Performance Survey (SIPS). SIPS allows bosses to rank their employees on several issues including achieving budget objectives, communication quality, continuing education and training activities, and emphasis of teamwork among subordinates. SIPS software computes means and standard deviations, and benchmarks each employee relative to all others in the same evaluation system. However, nobody at the company believes in SIPS output. Why?
What will be an ideal response?
If the data is incorrect, it doesn't matter how you report it. The supervisors may be shirking in their duty of ranking their subordinates' true performance. Supervisors may shirk in order to avoid conflicts, or to reward on personal likes or dislikes. To compound the problem, some employees may actively engage in trying to influence their supervisors to give them favorable ratings. Another possibility is that forced SIPS distributions may not accurately report true performance; a well-performing department would be required to report the same performance distribution as an underperforming department.
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Suppose you collect stamps and coins for the sheer fun of it. Currently, your collection contains both. For purposes of this problem, suppose that stamps all sell for one price and coins all sell for another, and both are normal goods. a. Begin by illustrating your current budget constraint (with stamps on the horizontal and coins on the vertical) as well as the bundle A you currently own. Assume that you have done the best you can given your circumstances. b. The stamp industry has recently marketed its product as a safe way of investing and insuring against inflation. As a result, the price of stamps has been driven up since you chose your current bundle. Show how this changes your budget constraint given that you can buy and sell both stamps and coins --- and assuming you have no
additional funds to spend on your collections. c. Are you happy about the stamp industry's marketing campaign? In what way will you adjust your collection? d. After a while (and after you have made your desired adjustments), it turns out that the marketing campaign only produced a temporary "bubble" in the stamp market --- and prices fall back to what they were before. Are you happy when the bubble bursts? Will you have more or fewer coins and stamps than you had before the marketing campaign started? e. True or False: For collectors that collect to satisfy their passion (rather than as an investment strategy), volatility in prices is good. What will be an ideal response?
If the financial innovations such as ATM machines make money demand less elastic than it was before, then
a. the LM curve will become steeper. b. the LM curve will become flatter. c. both the IS and LM curves will become flatter. d. the LM curve will shift to the left.
A job leaver is an individual
A) in the labor force whose employment was involuntarily terminated. B) who used to work full time but left the labor force and has now reentered it looking for a job. C) in the labor force who quits voluntarily. D) who has never held a full-time job lasting two weeks or longer but is now seeking employment.
Which of the following can be categorized as a commodity money standard?
a. The pegged exchange rate standard b. The free float standard c. The managed float standard d. The reserve currency standard e. The gold standard