If the value of your marginal product is 100 and you are being paid 80, which of the following is the most plausible reason that you remain with the firm?
A. You have no other options so you stay or go unemployed.
B. You are altruistic and want to contribute to the firm's normal profit.
C. You have no way of knowing the value of your marginal product so you feel OK about the salary of 80.
D. You value the high rank and leadership role as well as the salary that your position offers.
Answer: D
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An American buys a Japanese car, paying by writing a check on an account with a bank in New York. How would this be accounted for in the balance of payments?
A) current account, a Japanese good import B) current account, a U.S. good import C) financial account, a U.S. asset import D) financial account, a U.S. asset export E) a current account as a U.S. good import and a financial account, a U.S. asset export
When there is a tendency for a particular product to come into favor with additional consumers because other consumers have chosen to purchase the product
A) negative market feedback occurs. B) positive market feedback occurs. C) there is no dominant strategy. D) a price war must result.