J.T. Smith runs Game maker, an equipment producer for gaming service corporations. As CEO, Smith is seemingly worth $2.5 million per year in the marketplace. The directors are attempting to decide how to divide his compensation package between cash salary and perquisites. Using budget constraints and indifference curves, illustrate the potential outcomes for the board of directors.

The reduction in the market output resulting from the imposition of a price floor depends on both the price elasticity of demand and the price elasticity of supply.

Answer the following statement true (T) or false (F)

Changes in leading indicators signal

A. the changes in the frictional and seasonal unemployment rate. B. the changes in the frictional unemployment rate and the changes in the inflation rate. C. the changes in the market basket. D. the changes that will occur in the economy.