Identify the correct statement related to objective and subjective performance measures.
A. Subjective measures induce dysfunctional behaviors while objective measures do not.
B. Subjective measures are used in explicit formal contracts.
C. Objective measures can create incentives for gaming.
D. Objective measures are more accurate than subjective measures.
Answer: C
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In the foreign exchange market, as the U.S. exchange rate rises, other things remaining the same, the
A) quantity of dollars demanded decreases. B) demand curve for dollars shifts rightward. C) demand curve for dollars shifts leftward. D) supply curve of dollars shifts rightward. E) quantity of dollars demanded increases.
Policies that restrict supply could generate an increase in social welfare because the increase in producer surplus could exceed the decrease in consumer surplus
Indicate whether the statement is true or false