Answer the following statement true (T) or false (F)
1) The principal-agent problem in labor markets arises because of the possibility of shirking by workers.
2) Efficiency wages are established at below-equilibrium levels.
3) Human capital investment refers to spending on education and worker training.
4) Noncompeting groups of workers are the result of geographic immobilities.
5) Shirking refers to the behavior of workers who provide less-than-expected effort on the job.
1) T
2) F
3) T
4) F
5)T
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Refer to Scenario 15.6. What formula shows the dollar stream expected from this purchase?
A) -$4000 + $0 + $25,000 + $25,000 + $25,000 + $25,000 B) $0 + $25,000 + $25,000 + $25,000 + $25,000 C) $25,000 + $25,000 + $25,000 + $25,000 D) -$4000 + $0 + $2500 + $2500 + $2500 + $2500 E) $96,000
Central banks can increase the money supply by:
a. Buying government securities. b. Selling foreign exchange. c. Raising margin requirements. d. All of the above. e. None of the above.
Refer to the tables. Opportunity costs of producing military goods are:
A. increasing in Duckistan but constant in Herbania.
B. constant in both Duckistan and Herbania.
C. larger in Duckistan than in Herbania.
D. smaller in Duckistan than Herbania.
If people begin to generally feel better about the future ________
A) autonomous consumption should rise B) autonomous investment should rise C) the AD curve will shift to the right D) all of the above E) none of the above