According to a Recent Study of Chilean Bus Drivers,drivers Who

question 195

Multiple Choice

According to a recent study of Chilean bus drivers,drivers who are paid by the number of passengers they transport have higher productivity than drivers who are paid by the hour.This result is an example of which principle of economics?

• A) People face tradeoffs.
• B) The cost of something is what you give up to get it.
• C) Rational people think at the margin.
• D) People respond to incentives.

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Definitions:

IFRS

International Financial Reporting Standards; a set of global accounting standards that provide guidance on how to report financial events.

GAAP

GAAP refers to the widely recognized set of accounting norms and guidelines followed in the U.S. for preparing financial statements.

Fair Value

The amount one would obtain from selling an asset or the cost to transfer a liability, in a smooth transaction with market players on the day of valuation.

Identifiable Intangible Assets

Non-physical assets that can be separated from the company and sold, transferred, or leased, such as patents and trademarks.