A potential problem with piece-rate plans is that:
A. it is difficult for managers to enforce.
B. workers have no incentive to work hard.
C. workers may put little emphasis on the quality of the good.
D. workers will have a tendency to under-produce the good.
Answer: C
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An increase in the equilibrium price and a decrease in the equilibrium quantity can be the result of
A) a decrease in demand. B) an increase in supply. C) a decrease in supply. D) an increase in demand. E) None of the above.
Which one of these statements is true?
A. Most of the largest U.S. corporate mergers and acquisitions have occurred since 1995. B. There is no discernable trend toward corporate bigness. C. Conglomerate mergers are all vertical mergers. D. In general, the deregulation of the airlines industry has led to higher costs and higher prices.
If a monopolist is producing an output at a point where ATC > P > MC, then it is
A. earning negative economic profits. B. earning positive economic profits. C. covering total costs but not total variable costs. D. breaking even.
The official reserve transactions balance in the United States balance of payments accounts is
a. reflects the difference between government spending and total taxes. b. negative if a current account deficit exceeds a capital account surplus. c. positive if a current account deficit exceeds a capital account surplus. d. none of the above