In the labor market, contracts are often designed to include a variable salary component that is tied to some measure of performance. Why?
A. Labor unions demand a variable salary component.
B. The variable component reduces wages paid by firms.
C. Such contracts provide workers with the incentive to work hard.
D. Most people are risk-loving and thus variability in their compensation leads to higher total utility.
Answer: C
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A) a liability; an asset; increases B) a liability; an asset; decreases C) an asset; a liability; increases D) an asset; a liability; decreases
The income tax levied during the Civil War (1861–65) was declared constitutional in Springer v U.S. (1881) because it was not a direct tax
Indicate whether the statement is true or false
A supply shock jolts the economy from one Phillips curve to another
Indicate whether the statement is true or false
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