A payday loan company has decided to open several new locations in the city. To decide where to open these locations it hires consultants and pays them per store opened. At the end of the quarter, the company notices a many of the new stores' sales volume fail to meet expectations. To incentivize the consultants to instead focus on opening profitable stores, the company decided to alter the
compensation to a percentage of the profit earned per new store. This puts the consultants
a. In a less risky position
b. A more risky position
c. In risk neutral position
d. None of the above
b
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What is the utility-maximizing rule?
What will be an ideal response?
Fred Jaher reported to the government interviewer that he worked 40 hours last week as a stocker at a Target department store. He also said that he has a Ph.D. in history and had hoped to be a history professor. With all this information, we know that Fred is
a. a member of the labor force who is underemployed b. a member of the labor force who is structurally unemployed c. a member of the labor force who is frictionally unemployed d. a discouraged worker who is not a member of the labor force e. not a member of the labor force because he is not working at his capacity
Why is a woman buying cosmetics at a department store considered a component of the product market?
a. A firm is selling products to a household. b. The purchase is regulated by the federal government. c. The product cannot be purchased anywhere else. d. The purchase price is presumably a small portion of her income.
Which of the following correctly ranks personal consumption, government consumption and investment, and nonresidential investment in order from greatest to least for the U.S. in 2015?
A. Government consumption and investment, nonresidential investment, personal consumption B. Personal consumption, nonresidential investment, government consumption and investment C. Personal consumption, government consumption and investment, nonresidential investment D. Government consumption and investment, personal consumption, nonresidential investment