A widget producer is deciding whether to compensate widget makers on a salary basis or a per unit basis. Given that it is difficult to monitor shirking, which of these pay schedules would provide stronger performance incentives?

The supply and demand schedules for dozens of roses are given below: Price__ Quantity S per period__ Quantity D per period $10________ 200_______________ 500 $20________ 300_______________ 450 $30________ 400_______________ 400 $40________ 500_______________ 350 $50________ 600_______________ 300 The equilibrium price for a dozen roses is

A) $30. B) $50. C) $20. D) $10. E) $40.

If inflation becomes a serious problem, a Monetarist-oriented President is likely to favor a policy emphasizing

A) slower monetary growth. B) lower interest rates. C) higher taxes. D) wage and price controls.