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Describe how a manager who derives satisfaction from both income and shirking allocates a 10-hour day between these activities when paid an annual, fixed salary of $115,000. Time spent working: hours Time spent shirking: hours When this same manager is given an annual, fixed salary of $115,000 and 3 percent of the firm’s profits—amounting to a total salary of $140,000 per year—the manager chooses to work 6 hours and shirks for 4 hours. Given this information, which of the compensation schemes does the manager prefer? The scheme with fixed payment of $115,000 and a percentage of profits. The manager is indifferent between the two payment schemes. The scheme with only a fixed payment of $115,000.
Consider our core values of Excellence, Community, Integrity and Responsible Stewardship: Should the U.S. continue farm subsidies? Make sure to incorporate the concept of comparative advantage and gains from trade (vs competitive advantage)
Unions contribute to
The setup cost is $100 per order up to 99. For orders of less than a pallet, the setup cost is $200. The setup cost for pallet loads is $1000. The holding cost is 1% of the purchasing cost per item per week.
Calculate the equilibrium level of income or real GDP for this economy. b. What happens to equilibrium Y if I changes to 10? What does this outcome reveal about the size of the multiplier?
If a U.S. firm purchases a foreign company located in another country, the transaction is accounted for in the balance of payments as part of:
"The lowering of barriers to trade and investment between countries within a trade group will probably be followed by increased price competition." Do you agree? Why? Why not?
What does it mean when we say that a firm enjoys increasing returns to scale? What are some factors that contribute to a firm achieving increasing returns to scale (or economics of scale) in the long run?
Which of the following is NOT a component of GDP?
Income from recycling plastics is expected to be $2000 in Year 1 and increase by $500 a year for each of the next 5 years if you buy a sorting machine. ($2000 in Year 1, $2500 in Year 2, etc.) Draw a cash flow diagram showing your expected income in ..
Assuming transaction costs are small, the Coase theorem would predict that private parties could arrive at an efficient solution for which of the following problems?
Since its founding in 331 B.C.E., the city of Alexandria has been a center of trade for the Mediterranean countries, as well as the Middle Eastern countries. Part of this is due to geography, but it is also due to the network effect. What is the sour..
During 2003, we began to stop worrying that inflation was a problem. Instead , we began to worry about deflation, a decline in the price level. Assume that the central bank ( federal reserve ) decided to hold the money supply constant. What impact wo..
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