If it is difficult for a firm to attribute the output it produces to a particular worker then
A) a piece-rate system of compensation will be preferable to a salary system.
B) a salary compensation system will be preferable to a commission system.
C) its employees are likely to form a union.
D) a commission system of compensation will be preferable to a salary system.
B
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For much of 2001 and 2002, McDonalds faced a(n):
A) decrease in demand. B) increase in demand. C) increase in profits. D) none of the above.
Consider the following statement: "If the government attempts to raise employment through increased fiscal spending, all it will end up doing is increasing the price level." The statement rests on the assumption that:
a. the aggregate demand curve is a horizontal line. b. the aggregate supply curve is a vertical line. c. the aggregate supply curve is upward-sloping. d. the aggregate supply curve is downward-sloping. e. the aggregate supply curve is a horizontal line.