A disadvantage of options as instruments of performance-related rewards is:
a. that it exposes the executives to market volatility.
b. that it increases opportunistic behavior on the part of the employees who expect to earn these incentives.
c. that the actual monetary gains from such incentives are usually lower than other performance-related incentives provided by organizations.
d. that once an option has been exercised and the executive has sold her shares it will have no continuing effect on her incentives to make better future decisions.
D
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A perfect price discriminator
A) charges the maximum price for each unit that consumers are willing to pay. B) is able to convince consumers to pay more for each unit than they are willing to pay. C) is unable to make an economic profit. D) disregards the market demand curve.
An exogenous rise in government expenditures will have the same effect on GDP as an equal rise in either autonomous ________ or autonomous ________
A) consumption; investment B) taxes; consumption C) savings; investment D) taxes; investment
The Consumer Price Index measures
A) the average of raw material prices paid by producing firms. B) the level of prices with respect to goods and services purchased by a typical consumer in urban areas. C) the average of the prices of all goods produced in a country and goods imported from other countries. D) hourly wage rates of manufacturing workers.
Prices
A. solve the problem of distribution of products among consumers. B. act as rationing devices. C. under laissez-faire produce an efficient allocation of resources. D. do all of the things listed here.