6. Financial incentives tied to output are more likely to increase firm profits A. when workers' output is influenced by demand shocks over which work- ers have no control. B. when workers are less risk averse C. when workers perform other tasks (like service) and don't just focus on increasing output D. when replacing workers who perform poorly is easier 7. Markets are generally efficient (maximize producer surnlu plus consumer sur- plus), so economists argue the role of government in markets is limited to objec- tives other than efficiency (such as reducing inequality) and addressing market failures (or market imperfections). Some market imperfections can also be mit- igated by firms. Which of the following is not an example of how governments or firms mitigate market failures (or market imperfections)? A. governments make vaccines available to consumers at below cost prices. B. regulatory agencies require manufacturers to install equipment that reduces smokestack emissions. C. firms invest in reputations for delivering safe and reliable products. D. governments tax personal income in order to pay for foreign aid. E. workers pay for training programs to demonstrate to potential employ- ers that they are more productive.
6. Financial incentives tied to output are more likely to increase firm profits A. when workers' output is influenced by demand shocks over which work- ers have no control. B. when workers are less risk averse C. when workers perform other tasks (like service) and don't just focus on increasing output D. when replacing workers who perform poorly is easier 7. Markets are generally efficient (maximize producer surnlu plus consumer sur- plus), so economists argue the role of government in markets is limited to objec- tives other than efficiency (such as reducing inequality) and addressing market failures (or market imperfections). Some market imperfections can also be mit- igated by firms. Which of the following is not an example of how governments or firms mitigate market failures (or market imperfections)? A. governments make vaccines available to consumers at below cost prices. B. regulatory agencies require manufacturers to install equipment that reduces smokestack emissions. C. firms invest in reputations for delivering safe and reliable products. D. governments tax personal income in order to pay for foreign aid. E. workers pay for training programs to demonstrate to potential employ- ers that they are more productive.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:6. Financial incentives tied to output are more likely to increase firm profits
A. when workers' output is influenced by demand shocks over which work-
ers have no control.
B. when workers are less risk averse
C. when workers perform other tasks (like service) and don't just focus
on increasing output
D. when replacing workers who perform poorly is easier
7. Markets are generally efficient (maximize producer surnlu plus consumer sur-
plus), so economists argue the role of government in markets is limited to objec-
tives other than efficiency (such as reducing inequality) and addressing market
failures (or market imperfections). Some market imperfections can also be mit-
igated by firms. Which of the following is not an example of how governments
or firms mitigate market failures (or market imperfections)?
A. governments make vaccines available to consumers at below cost prices.
B. regulatory agencies require manufacturers to install equipment that
reduces smokestack emissions.
C. firms invest in reputations for delivering safe and reliable products.
D. governments tax personal income in order to pay for foreign aid.
E. workers pay for training programs to demonstrate to potential employ-
ers that they are more productive.
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