A firm pays the market equilibrium wage of $15.00 an hour, and the workers produce 25 units of output an hour. If the firm adopts an efficiency-wage policy, then the wage rate for these workers would be expected to:
A. Increase and productivity to decrease
B. Decrease and productivity to increase
C. Increase and productivity to increase
D. Decrease and productivity to decrease
C. Increase and productivity to increase
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A defendant believes there is a 70 percent chance that the plaintiff will win $800,000 and a 30 percent chance that the plaintiff will lose and be awarded nothing (zero). The plaintiff believes that there is a 90 percent chance that they will win $800,000 and a 10 percent chance that they will be awarded nothing (zero). The plaintiff's litigation cost is $300,000 and the defendant's litigation
cost is $200,000. The defendant would be willing to pay any amount up to ________ to settle. A) $760,000 B) $700,000 C) $420,000 D) $500,000
In order to avoid principal-agent problems, McDonald's uses all but one of the following franchising tactics. Which is the exception?
a. It does not advertise for franchisees. b. Franchisees must put up 40 percent of the investment themselves. c. Franchisees must undergo a preliminary training period, followed by a 12- to 18-month training program. d. Franchisees must already have another fast-food restaurant franchise. e. Franchisees are required to work full-time daily in their restaurant.
If foreign exchange rates are determined by the interaction of supply and demand forces for the various currencies, then the exchange rate is
a. fixed b. government-determined c. set by the value of gold d. said to float e. not in equilibrium
Mary purchases a U.S. Treasury bond; the bond is a(n):
A. asset of the U.S. government as well as an asset for Mary. B. asset for the government but a liability for Mary. C. asset for Mary but not a liability of the U.S. Government. D. liability of the U.S. government and an asset for Mary.