Under a corrective tax, _____
a. firms always have an incentive to use the least-cost method
b. a one-size-fits-all tax will achieve an efficient outcome that maximizes net social welfare
c. the deadweight loss caused by externality increases
d. equilibrium occurs at a socially optimal level of output and a lower market price
a
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Backloaded compensation encourages
A) employee turnover. B) employee rollover. C) principals to be agents. D) employees to stay with the firm.
The number of workers hired by a firm at a specific wage rate can be determined if you know the
a. price of the good b. supply curve of labor c. MPP of labor d. MLC (marginal labor cost) e. MRP of labor
Discuss the problems associated with the Bretton Woods system
You are thinking of buying a bond from Bluestone Corporation. You know that this bond is long term and you know that Bluestone's business ventures are risky and uncertain. You then consider another bond with a shorter term to maturity issued by a company with good prospects and an established reputation. Which of the following is correct?
a. The longer term would tend to make the interest rate on the bond issued by Bluestone higher, while the higher risk would tend to make the interest rate lower. b. The longer term would tend to make the interest rate on the bond issued by Bluestone lower, while the higher risk would tend to make the interest rate higher. c. Both the longer term and the higher risk would tend to make the interest rate lower on the bond issued by Bluestone. d. Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Bluestone.