Which of the following would not be used by firms to deter shirking?
A) requiring employees to post a bond
B) offering a bonus after five years of service
C) paying more than the market wage
D) paying less than the market wage
D
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Which of the following statements is correct, when the exchange rate changes from €2/$ to €1.5/$?
a. Both the euro and the dollar appreciate. b. Both the euro and the dollar depreciate. c. None of the above. d. The euro (€) depreciates. e. The euro appreciates and the dollar depreciates.
Which of the following is a normative question about an initiative to impose a new tax?
A.All of the above are normative considerations. B. What is the expected impact on producers and consumers? C. How much revenue is the tax expected to raise? D. Is the tax considered to be in the public interest?
Which combination of fiscal policy actions would most likely be offsetting?
A. Increase in taxes and government spending B. Increase in taxes but no change in government spending C. Decrease in taxes and increase in government spending D. Decrease in taxes but no change in government spending
If a perfectly competitive industry is in long-run equilibrium, then
A) price equals average cost. B) price is greater than average cost and equal to marginal cost. C) all firms earn the same accounting profits. D) marginal cost is less than average cost.