One way to prevent workers from shirking is to
A) hire only workers who are predisposed toward shirking.
B) hire only workers who are predisposed toward not shirking.
C) reduce monitoring to zero.
D) pay workers a fixed fee.
B
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
In a monopolistically competitive industry, firms which enter the market in the long run produce a close substitute and not a standardized product
a. True b. False Indicate whether the statement is true or false
GDP, according to the income method, is the sum of:
a. wages, rent, interest, and profits. b. consumption, gross investment, depreciation, and net exports. c. depreciation, net factor income from abroad, and indirect business taxes. d. gross investment, wages, profits, rent, and indirect business taxes. e. consumption, profits, interest, rent, and net exports.
Suppose you are planning to sell your house. You value your house at $150,000. If you do not hire a realtor, you will be able to sell your house to a buyer whose reservation price is $180,000. If you hire a realtor, you will be able to sell your house to a buyer whose reservation price is $200,000. Assume that the realtor's opportunity cost of negotiating the sale is $10,000. In this case, does using a realtor to sell your house increase total economic surplus?
A. It depends on the sales price of the house, which isn't given in the question. B. No, because you value the house at $150,000 no matter who buys it. C. No, because your house only generated economic surplus when it was first built. D. Yes, using a realtor increases total economic surplus by $10,000.