When a company is very dependent on firm-specific human capital, it makes sense for the company to
A. use only benchmark competitive wage rates.
B. develop programs for sending employees to the local university.
C. create an extensive internal labor system for career advancement.
D. offer compensating differentials for unpleasant jobs.
Answer: C
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A die is rolled and if the outcome is an even number, a gambler receives $10. If the outcome is an odd number, the gambler loses $10. What is the expected value of this game?
What will be an ideal response?
An open market purchase of Treasury securities by the Federal Reserve causes the reserves of banks to rise
Indicate whether the statement is true or false
If investment is interest-insensitive,
A) monetary policy has no impact on equilibrium income. B) monetary policy has no impact on the equilibrium interest rate. C) fiscal policy has no impact on equilibrium income. D) fiscal policy has no impact on the equilibrium interest rate.
When there are few unemployed resources, additional spending will tend to
a. flow directly to the unemployed resources, so that the multiplier can be maintained at 1/1-mpc. b. increase the marginal propensity to consume, and thereby increase the size of the multiplier. c. increase the demand for resources and drive prices downward, increasing the size of the multiplier. d. bid resources away from other activities and drive prices upward, reducing the size of the multiplier.