If output is falling and unemployment is rising, the economy must be in a(n)
A. depression.
B. contraction.
C. expansion.
D. hyperinflationary period.
Answer: B
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Incentive compensation schemes are more likely to be value enhancing if:
A. they can accurately account for the dysfunctional behavior of the principal. B. they can minimize the administrative cost borne by the agent. C. they are designed to limit the agent's gaming behavior. D. they are designed to minimize the principal's average cost.
Studies of NAFTA have concluded that free trade caused ______ in the variety of U.S. imports from Mexico.
a. decreases b. increases c. no change d. slight decreases
Which of the following most likely includes unreported income from illegal sources?
a. underground economy b. nonmarket transactions c. externalities d. leisure
Payments by the government to the public for which the government receives no current goods or services in return are called:
A. capital losses. B. net taxes. C. public saving. D. transfer payments.