Peter was recently hired as a salesman for a national consulting firm. His job involves spending a significant portion of his time out of the office visiting prospects and attending conferences. Which of the following is a strategy the consulting firm may employ to discourage Peter from shirking his responsibilities?
a. Tell Peter that the shareholders want to earn a large profit this year.
b. Stop paying Peter bonuses based on how much he's sold.
c. Allow Peter to set his own schedule and work from home frequently.
d. Pay Peter an above-equilibrium wage.
d
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How can we anticipate the proportion of a newly imposed unit excise tax that consumers will pay?
A) Consumers will pay most of the tax whenever their demand for a product is relatively unresponsive to price changes. B) Consumers will always pay 100 percent of an excise tax. C) Consumers will pay most of the tax whenever their demand for the product is very price sensitive. D) Since producers always pay 100 percent of an excise tax, we know consumers will not pay any of the tax.
Economists have long pondered the reasons why people hold money. Some reasons seem to be more important than others. Perhaps not among the most important but still a reason why people demand money is the precautionary motive. This precautionary demand for money refers to the demand
a. to satisfy everyday transactions b. for investment purposes c. for speculative purposes such as having money available to take advantage of stock purchases d. to protect against inflation e. to cover unexpected events
The government can _______________ change an inefficient market outcome (in the case where there is a negative externality) into an efficient outcome by imposing a tax on the activity that generates the negative externality
A) in almost all situations B) possibly C) not D) in all situations E) a or d