If an auto dealer wants to hire a salaried salesman but is afraid of facing the adverse selection problem, the principle can
a. Hire a salesman who has a reputation for working hard
b. Monitor the salesman to prevent shirking
c. All of the above
d. None of the above
b
You might also like to view...
The horizontal summation of individual demand curves gives:
a. a supply curve. b. a Phillips curve. c. a market demand curve. d. the quantity supplied. e. a production function.
The crowding-out effect implies that restrictive fiscal policy will
a. increase aggregate demand and employment. b. lead to a significant increase in the natural rate of unemployment. c. be highly effective against inflation. d. reduce real interest rates.
If the foreign income decrease, then we might expect net export spending to:
A. remain constant. B. increase. C. decrease. D. there is not enough information to determine what would happen.
With an increase in the real interest rate, consumption and real gross domestic product will most likely change in which of the following ways?
A) Increase/Increase B) Increase/Decrease C) Decrease/Increase D) Decrease/Decrease E) No change/Increase