A common way used to align the interests of managers with the interests of equity holders is
A) piecework pay.
B) stock options.
C) forwarded loaded pay schemes.
D) insurance.
B
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If we look at the federal government budget over the past 40 years we see that
A) most years the government budget has been balanced. B) the government has been running a budget deficit since 1997. C) only occasionally has the budget been in deficit. D) most years the budget balance has not been calculated. E) most years the budget has been in deficit.
In a perfectly competitive market price takers exist because there are:
A. few sellers and many buyers. B. few buyers and many sellers. C. many buyers and sellers. D. few sellers and buyers.
In order to get his bachelor's degree, Timothy gave up an offer for a full time job as a bartender. Therefore, Timothy incurred an opportunity cost.
Answer the following statement true (T) or false (F)
Which expression below matches most closely the way economists go about testing their models?
A. "Seeing the results is the only way to know if you are right." B. "A bird in the hand is worth two in the bush." C. "In the long run, we are all dead." D. "Consistency is the hobgoblin of small minds."