A process through which a firm seeks to obtain earnings without contributing to production, thus wasting valuable resources, is known as
A. moral hazard.
B. rent seeking.
C. detrimental externality.
D. a defective telescopic faculty.
Answer: B
You might also like to view...
Along a given ________ Phillips curve, a lower unemployment rate can be achieved only by paying the cost of a ________ inflation rate, and a lower inflation rate can be achieved only by paying the cost of a ________ unemployment rate
A) long-run; higher; lower B) short-run; higher; lower C) long-run; higher; higher D) short-run; lower; higher E) short-run; higher; higher
Refer to the scenario above. Which of the following techniques is used to arrive at the optimum decision in the scenario?
A) Optimization in levels B) Comparative statics C) Total net benefit approach D) Principal of Optimization at the Margin
The efficiency wage theory argues that:
a. employers will try to keep wages from falling when the economy is weak or the business is having trouble, and employees will not expect huge salary increases when the economy or the business is strong. b. the productivity of workers will increase if they are paid more, and so employers will often find it worthwhile to pay their employees somewhat more than market conditions might dictate. c. if an employer reduces wages for all workers during economic downturn, then the best workers more likely to leave, while the least attractive workers are more likely to stay. d. those already working for firms are "insiders," while new employees, at least for some time, are "outsiders.".
In perfect competition, changes in an individual firm's output will change the overall market price
a. True b. False Indicate whether the statement is true or false