incentives
What will be an ideal response?
internal : incentive contracts, stock options, year-end bonuses
external : personal reputation, potential for takeover
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Refer to Figure 4-4. What is the value of producer surplus at a price of $18?
A) $240 B) $300 C) $340 D) $720
Response to the energy crisis of the early 1970s did not include
a. gasoline "rationing by waiting." b. gasoline "rationing by price." c. increased bureaucratic involvement. d. Americans insulating their homes.
A . What action would a government take to keep its exchange rate from rising if demand for its currency increases? b. Why would a government want to keep its exchange rate from rising?
The theory of bounded rationality is consistent with which of the following?
A. It is irrational to follow principles such as "follow the leader." B. It always pays to be irrational. C. Our rationality depends on rules of thumb such as "you get what you pay for." D. None of our decisions are rational.