If a firm changed its fringe benefit program so that no employee suffered a loss in benefits and some employees enjoyed an increase in benefits, then
a. this could not be a Pareto improvement
b. the firm's policies are economically efficient
c. this could be a Pareto improvement
d. the firm's policies are fair
e. the firm is losing money
C
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An increase in ________ tends to increase ________ and therefore increase ________
A) cost; price; supply B) cost; demand; price C) demand; price; cost D) supply; cost; price
Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, what effect would these flows have had on Venezuela's reserves account and value of the Bolivar (the Venezuelan currency)?
a. Reserves account would rise and value of the Bolivar would fall. b. Reserves account would not change and value of the Bolivar would fall. c. Reserves account would fall and value of the Bolivar would not change. d. Reserves account would fall and value of the Bolivar would fall. e. Reserves account would fall and value of the Bolivar would rise.