Setting performance goals based on historical data and past performance creates:
A. a ratchet effect.
B. a compensating differential.
C. opportunism.
D. the horizon problem.
Answer: A
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When the Federal Reserve lends reserves to commercial banks, this is an example of:
A. discount window lending. B. an open-market sale. C. a change in reserve requirements. D. an open-market purchase.
Which of these economies has the highest saving rate?
A) Greece B) China C) United States D) Brazil E) Japan
Total surplus in a market can be measured as the area below the supply curve plus the area above the demand curve, up to the point of equilibrium
a. True b. False Indicate whether the statement is true or false
Refer to the information provided in Figure 13.11 below to answer the question(s) that follow.
Figure 13.11Refer to Figure 13.11. Suppose a monopolist faces the demand and costs in the figure and is able to perfectly price discriminate. The monopolist will ________ $16,000.
A. earn a profit of B. have total costs equal to C. have total revenues equal to D. lose