In the expression for present value of benefits (PVB), ?(bt/[1+rs]t), with bt= Bt/(1 + p)t,
a. bt represents incremental nominal benefits
b. Bt represents incremental real benefits
c. bt represents incremental real benefits
d. p stands for the opportunity cost of money
c. bt represents incremental real benefits
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
Answer the following statements true (T) or false (F)
1) If managers holding an auction release more information about the value of the item, they will reduce their profit. 2) Regardless of whether an auction's purpose is to sell a product or buy one, providing more information about the value of the auctioned item can benefit the auction's managers because bidders will have more confidence in their valuations. 3) Regardless of what policies a manager creates, it is unlikely that the manager can completely solve the principal-agent problem. 4) If restaurant managers have a policy that servers' tips are to be combined and then shared equally at the end of the day, this will incentivize all servers to to take the best care of their customers. 5) In general, if managers are able to make a job more appealing to an employee, this helps managers as it reduces labor turnover.
For a monopsonistic hirer of labor the gap between labor's marginal value product and its wage rate will be greater
a. the more elastic the supply curve for labor. b. the more inelastic the supply curve for labor. c. the more elastic the firm's demand for labor. d. the more inelastic the firm's demand for labor.
If the exchange rate between the Canadian dollar [C$] and the U.S. dollar [$] on January 6, 2010 is C$/$ = 1.03, then the exchange rate $/C$ will be:
a. 0.67. b. 0.79. c. 0.97. d. 1.97. e. 1.33.