A written contract between an employer and an employee creates value as long as:
a. the benefits exceed the costs of forming and enforcing it.
b. the productivity of the employee is equivalent to the wage.
c. on-the-job learning is unimportant.
d. the relationship between the employer and the employee is short-term.
A
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In the Keynesian framework, as long as output is ________ the equilibrium level, unplanned inventory investment will remain positive and firms will continue to ________ production
A) below; lower B) above; lower C) below; raise D) above; raise
After acquiring closely substitutable product brands, a firm can successfully raise prices on both of the brands without losing much of its total sales because
a. Customers are insensitive to price changes b. None of these sales would be captured by its other brand c. Some of these sales lost by one brand would be captured by the other d. All of the above
What statement below best describes how the environment is incorporated into the standard circular flow model?
A) The long-term availability of natural resources is considered B) The pollution generated by firms and households is considered C) The input of solar energy is considered D) Natural resources are considered as inputs into the production process E) The build-up of waste heat is considered
Monetary policy includes all of the following, except
A. changes in government spending on goods and services. B. changes in reserve requirements. C. changes in the discount rate. D. buying and selling government securities on the open market.