Limit pricing is a strategy which is intended to deter entry into an industry
Indicate whether the statement is true or false
TRUE
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Use the following diagram to answer the next question.
Which of the following would cause a move from MS1 to MS3?
A. The banking system decides to hold less excess reserves and make more loans. B. The reserve requirement is reduced by the Board of Governors. C. The Federal Open Market Committee decides to sell bonds. D. The discount rate is decreased by the regional Federal Reserve banks.
All national banks were required to join the Federal Reserve Bank of their region; however, state banks could do so on a voluntary basis
Indicate whether the statement is true or false
Which of the following methods could be used by an employer to align the incentives of an employee with its own interests?
a. Paying market wages b. Paying efficiency wages c. Signaling d. Partially outsourcing human resource functions
Individuals: a. respond to incentives in predictable ways
b. decrease the level of an activity in response to negative incentives. c. respond to positive incentives by increasing the level of activity. d. do all of the above.