In order for spot checks to work:
A. the time of the checks must not be predictable.
B. employees must be monitored continually.
C. Both employees must be monitored continually and the time of the checks must not be predictable are correct.
D. None of the answers are correct.
Answer: A
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Consider the following three statements:
i. You can either stand during a college football game or you can sit. You believe that you will see the game very well if you stand and others sit but that you will not be able to see at all if you sit and others stand. You therefore decide to stand. ii. Your friend tells you that he expects many people to stand at football games. iii. An economist studies photos of many college football games and estimates that 75 percent of all fans stand and 25 percent sit. Which of these statements deals with optimization, which deals with equilibrium, and which deals with empiricism? Explain.
Consumers are willing to pay a higher price for a product with a brand name as opposed to a generic product because:
a. a brand name provides a signal about a product's quality and reliability. b. they are willing to pay more for the privilege of watching the firm's commercials. c. a product with a brand name is always of higher quality. d. consumers maximize utility by purchasing the most expensive products. e. consumers are irrational.
Automatic stabilizers have the effect of
A. increasing aggregate demand during a recessionary gap. B. increasing long-run aggregate supply during a recessionary gap. C. increasing aggregate demand during an inflationary gap. D. increasing long-run aggregate supply during an inflationary gap.
If the production of a good involves positive externalities, ________
A) the market price of the good is higher than its optimal price B) the market price of the good is lower than its optimal price C) the average cost of production of the good in the long run is zero D) the variable cost of production of the good is zero