In markets-oriented systems an under-performing "entrenched" management is often replaced by
A) SEC regulators.
B) a hostile takeover.
C) stockholders electing a new board of directors to fire the managers.
D) the bank that owns the firm firing them.
B
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The Secretary of Labor states that wage rates in the country have risen by 2 percent this past year. The head of a local labor union states that wage gains should have been higher. The Secretary's statement is a (n) ____ economic statement, and the labor head's statement is a (n) ____ economic statement
a. normative; normative b. normative; positive c. positive; normative d. positive; positive e. proper; improper
Too few resources are devoted to the creation of knowledge because profit-seeking firms
a. undervalue knowledge in their pursuit of revenues. b. overuse their patents. c. tend to free-ride on the knowledge that others have developed. d. tend to rely on existing employee knowledge.