Under deferred compensation packages,
A) a moral hazard occurs if a firms fires a good worker before the worker receives her deferred compensation.
B) a moral hazard occurs if workers decide not to shirk so as to receive the deferred compensation.
C) moral hazards are avoided.
D) workers' wages are below their marginal revenue product as they near retirement.
A
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When purchases of tennis socks decline following an increase in the price of tennis sneakers (other things remaining equal), the relationship between these two items can be described as
A) substitutable. B) complementary. C) unique. D) ordinary.
Which of the following statements is always true with respect to oligopolists?
a. They react slowly to actions taken by other firms b. They lower prices together c. They raise prices together d. They know with certainty what they other firms will do e. They take into consideration how other firms might react.
In the macroeconomic model of aggregate supply and aggregate demand, price is:
A. calculated as a weighted average of the prices of all goods and services. B. the measure of the value of all goods and services produced by the economy. C. represented by GDP. D. None of these is true.
If a larger fraction of GDP is devoted to ___________, nation’s capital stock will grow faster and the aggregate supply curve will shift more quickly to the right, accelerating growth.
A. investments B. consumption C. trade D. none of these