__________ consumption expenditure is greater than disposable income
a) It is always the case that
b) Saving is positive whenever
c) Dissaving occurs whenever
d) None of the above answers is correct because it is impossible for consumption expenditure to be greater than disposable income
c) Dissaving occurs whenever
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The marginal product of labor is the:
A. change in labor necessary to produce an additional unit of output. B. cost of additional labor necessary to produce an additional unit of output. C. change in output resulting from adding an additional unit of labor. D. change in revenue resulting from adding an additional unit of labor.
Suppose the plant owners design an incentive scheme for the plant manager in which the feasible production level is set equal to output from the previous quarter. The bonus payment is determined by the formula B = 0.2Qf + 0.2(Q - Qf)
What potential problems can arise with this scheme? A) If Qf is unusually large, then the manager has little incentive to work hard during the following quarter because Q will likely fall back below Qf. B) If Qf is unusually small, then the manager will receive a small bonus regardless of their efforts during the current quarter. C) The manager has an incentive to underperform and generate a small Q during the current quarter in order to provide a smaller benchmark for performance in the next quarter. D) The incentive scheme only depends on current output and does not measure performance relative to feasible production.
Luke has lent his friend Mitch some money. However he underestimated the rate of inflation when they agreed to a repayment and interest schedule. Mitch will benefit from the inflation
a. True b. False Indicate whether the statement is true or false
What is the current average tariff on imported goods for the world?
a. equal to 2 percent b. equal to 5 percent c. less than 5 percent d. greater than 5 percent