A solution to the budget-gaming problem is

a. Introduce milestones or kinks in the compensation scheme
b. Use a target based pay function with each target scoring greater return
c. Do not base compensation on meeting a particular budget goal
d. All of the above

c

Economics

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Suppose that there are two factors, capital and land, and that the United States is relatively capital abundant while Canada is relatively land abundant. According to the HO model,

A) Canadian landowners should support Canada-U.S. free trade. B) Canadian capital owners should oppose Canada-U.S. free trade. C) U.S. capital owners should support Canada-U.S. free trade. D) All of the above.

Economics

The Fed has decreased the money supply. The formula for calculating the resulting change in demand deposits is

a. (1/RRR) minus the change in reserves b. (1/RRR) multiplied by the change in reserves c. the change in reserves divided by [1 - (1/RRR)] d. RRR minus the change in reserves e. [1 - (1/RRR)] multiplied by the change in reserves

Economics