What is an incentive system?
What will be an ideal response?
An incentive system is a method of organizing production that uses a market-like mechanism inside the firm. Instead of issuing commands, senior managers create compensation schemes that will induce workers to perform in ways that maximize the firm's profit.
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If 160 million people are employed, 15 million people are unemployed, and the population is 280 million people, the unemployment rate is
A) 57 percent. B) 62.5 percent. C) 8.6 percent. D) 9.4 percent. E) not possible to calculate without data on the labor force.
If a firm in a competitive market is currently producing a quantity where price exceeds the marginal cost, the firm should lower its price
Indicate whether the statement is true or false
Interest income is
a. the largest component of national income b. interest received by individuals for providing capital to the resource market c. the most stable component of national income d. capital e. part of the expenditure approach to GDP accounting
During the period that many call the Great Recession:
A. GDP fell. B. unemployment rose. C. there was a sharp decrease in consumer spending. D. All of these are true.