All these are motivations for tie-in-sales except,
a. Efficiency
b. Assure quality
c. Provide secret price discounts
d. All the above
d
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Which of the following factors explains why managers of government agencies (the public sector) have little incentive to operate efficiently?
a. It is relatively easy for voters to detect operational inefficiency in the public sector and do something to correct it. b. Public-sector managers face fierce competition. c. Public-sector managers have no fear of losses and bankruptcy when operational efficiency is not achieved. d. All of the above explain why government agencies have little incentive to be efficient.
Inga and Ron both work for the same firm on the same career ladder. Each has the same stock of human capital except for one difference: Inga has worked at the firm for 10 continuous years but Ron has had two leaves of absence mixed in with his 10 years of experience with the firm. One should expect:
A. Inga and Ron to earn the same income. B. Inga to earn twice as much as Ron. C. Ron to earn more than Inga. D. Inga to earn more than Ron.
Suppose there is a decrease in the short-term interest rate. Give this reduction in the current short-term interest rate, which of the following will most likely occur?
A) The long-term interest rate will increase. B) The long-term interest rate will remain the same. C) The long-term interest rate will decrease by more than the short-term rate. D) The long-term interest rate will decrease by the same amount as the short-term rate. E) The long-term interest rate will decrease, but by less than the short-term rate.
The effect of crowding out over the long run is
A. bad because it is deflationary in nature. B. bad because businesses have less access to loans. C. good because it ensures strong businesses. D. good because it tends to reduce taxes.