Which of the following statements about commission systems of compensation is false?
A) During sluggish periods, an employer's payroll expenses will decline along with sales.
B) If workers are paid on the basis of the number of units produced, they may become less concerned about quality.
C) They increase the risk to workers because sometimes output declines for reasons not connected to the worker's effort.
D) The lack of income stability will induce the more productive workers to leave in search of more secure employment.
D
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If a natural monopoly decreases the quantity of output it produces, then:
A. its profit will increase. B. its average cost will decrease. C. it will have to decrease its price. D. its average cost will increase.
When the price of a good changes, the income effect can be found by comparing the equilibrium quantities purchased
A) on the old budget line and the new budget line. B) on the original indifference curve when faced with the original prices and when faced with the new prices. C) on the new budget line and a hypothetical budget line that is a shift back to the original indifference curve parallel to the new budget line. D) on the new indifference curve.
The demand for labor is derived from the
A. demand for leisure. B. supply of labor. C. demand for final-output goods. D. supply of final-output goods.
If the price of hamburger increases, it would probably result in ________ in the demand for hamburger buns.
A) a decrease B) an increase C) no change D) random fluctuations