The fact that employees often take longer lunch breaks than they are supposed to is an example of
a. the principal-agent problem.
b. moral hazard.
c. adverse selection.
d. a golden parachute.
a. the principal-agent problem.
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Your nominal wage increases from $12 per hour to $13 per hour. At the same time, the price level increases from 140 to 147 . As a result,
a. The number of dollars you receive increases and the purchasing power of the dollars you receive increases. b. The number of dollars you receive increases and the purchasing power of the dollars you receive decreases. c. The number of dollars you receive decreases and the purchasing power of the dollars you receive increases. d. The number of dollars you receive decreases and the purchasing power of the dollars you receive decreases.
The discovery of a large amount of previously-undiscovered oil in the U.S. would shift
a. the long-run aggregate-supply curve to the right. b. the long-run aggregate-supply curve to the left. c. the aggregate-demand curve to the left. d. None of the above is correct.
The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts.
Point Y is ________, and point V is ________.
A. efficient; efficient B. efficient; inefficient C. inefficient; inefficient D. inefficient; efficient
Suppose total benefits and total costs are given by B(Y) = 100Y ? 8Y2 and C(Y) = 10Y2. What is the maximum level of net benefits (rounded to the nearest whole number)?
A. 139 B. 92 C. 78 D. None of the statements associated with this question are correct.