Employees often limit their output and engage in soldiering because of the fear that if they exceed output levels this time, management will increase output goals for the next time period. This is called the:
A. benchmark effect.
B. ratchet effect.
C. incentive effect.
D. goal standard effect.
Answer: B
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Which of the following statements is true?
A) The marginal entrant in a market earns the highest profit. B) The marginal entrant has the lowest cost among all firms in the market. C) Difference in technology and experience can lead to firms having non-identical costs even under perfect competition. D) In a market that has identical cost structures for all firms, there is possibility of positive economic profits in both the short run and the long run.
If the top personal tax rate is higher than the top corporate rate, high income taxpayers have an incentive to _____
a. incorporate b. save c. engage in tax evasion d. purchase stock
In Figure 11-9, which of the following is true?
A. MC = P. B. MC = MR. C. MU > MR. D. MU < MC.
What is likely to occur when the inflation rate increases, and workers do not receive pay increases?
A. Lower standard of living B. Higher consumer demand C. Decreased unemployment D. Increased spending