The owners of a business
a. are paid the market rate of return for resources they supply to the firm.
b. are residual income claimants.
c. have little incentive to monitor shirking on the part of employees.
d. have little incentive to provide their employees with an incentive system that encourages operational efficiency.
B
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During the bureaucratic bargaining process, if the legislature tries to counteroffer by saying it wants less output at a given price, the bureau's can employ the strategy of _____
a. saying no b. telling the legislature that reducing the output would endanger lives c. telling the legislature that at the lower output, the price per unit will be much higher d. making a counter-offer of more output at a lower price
If China's real GDP grew from $7 trillion one year to $8 trillion the next, the annual growth rate would be:
A. 14.3 % B. 87.5 % C. 114 % D. 12.5 %
If the probability of an outcome equals one, the outcome:
A. is certain to occur. B. has unquantifiable risk. C. is more likely to occur than the others listed. D. is certain not to occur.
A key assumption made when a supply schedule is constructed is that
A. the only factors that matter in determining supply are price and quantity. B. firms only want to sell a certain amount of a product. C. supply is too important to be left to the marketplace. D. only price and quantity vary, all other determinants of supply are held constant. E. demand has a positive slope.