Sam is responsible for ordering office supplies for the firm gets a bonus if the firm stays well-stocked at all times. The bonus implies he is more likely to
a. Pay lower prices for the supplies
b. Pay higher prices for the supplies
c. Have more stock outs
d. Resign from the position
b
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To be accepted as money, an item must perform all of the following functions EXCEPT
A) be a medium of exchange. B) serve as a store of value. C) be easily reproduced. D) serve as a standard of deferred payment.
For a risk-averse person, an indifference curve representing the different combinations of variance of return and expected return will be downward sloping and convex to the variance of return axis
Indicate whether the statement is true or false
The person who assumes the risks and uncertainties of business is
a. a manager of the business b. an owner of the business c. an excellent example of human capital d. an entrepreneur e. key to production, but not a factor of production
Firms operating in perfectly competitive markets try to maximize profits
a. True b. False Indicate whether the statement is true or false