Employers can try to overcome the moral-hazard problem involving their employees by
a. paying their employees more often.
b. paying their employees below-equilibrium wages since the employees will likely shirk some of their responsibilities.
c. better monitoring their employees' work efforts.
d. requiring their employees to take a pre-employment work effort test.
c
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The employment-to-population ratio is equal to the number of
A) unemployed people divided by the total population then multiplied by 100. B) employed people divided by the working-age population then multiplied by 100. C) employed people divided by the total population then multiplied by 100. D) unemployed people divided by the working age population then multiplied by 100.
An increase in the price of input used to produce a product will lead to
A) a decrease in the demand for that product. B) a decrease in quantity supplied of that product C) a decrease in the supply of that product. D) an increase in the supply of that product.
If businesses spend an additional $150 billion for investment projects in 2010, what will be the impact on national income (Y) if the multiplier is 2?
a. Y will increase by $50 billion. b. Y will increase by $150 billion. c. Y will increase by $300 billion. d. Y will increase by $450 billion.
Rainbow trout has the shortest fishing season, which causes a rapid decrease in its population. To prevent the extinction of the trout, the government initially imposed a quota on the total amount of fish caught. The quota was imposed on the fishing of rainbow trout to prevent _____
a. the free rider problem b. the tragedy of the commons c. asymmetric information d. deadweight loss