After Years of Hard Work in the Field of Macroeconomics

question 175

Multiple Choice

After years of hard work in the field of macroeconomics, you win the Nobel Prize in economics (currently about $1.5 million) .What is the most likely effect of this prize on your consumption function?

• A)It will shift downward temporarily.
• B)It will shift upward temporarily.
• C)It will shift downward permanently.
• D)It will shift upward permanently.
• E)none of the above

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Definitions:

Skill-based Pay

A compensation system where pay levels are determined by an individual's skills or knowledge, rather than job title or rank.

Employer Pays

A principle or practice where the employer is responsible for bearing certain costs, such as those related to employee wages, benefits, and other employment-related expenses.

Bureaucracy

Definition: A system of administration characterized by strict policies, procedures, and hierarchy, usually within large organizations or governments.

Compa-ratio

is a metric that compares an individual's salary to the midpoint of a salary range for their position, offering insight into relative pay positioning.