If a firm has established monitoring devices that have a 50% chance of detecting shirking, and an employee gains $5,000 from shirking, the employer can deter shirking by having employees post a bond equal to

A) $2,500.
B) $5,000.
C) $10,000.
D) $50,000.


C

Economics

You might also like to view...

If penalties for trading illegal drugs are instituted on both buyers and sellers, the

A) quantity might increase or decrease but the price will rise. B) price might rise or fall, but the quantity will decrease. C) price and the quantity will both decrease. D) price and the quantity will both increase.

Economics

Long-run average cost is never greater than short-run average cost because in the long run,

A) capital costs equal zero. B) the firm can move to the lowest possible isocost curve. C) wages always increase over time. D) wages always decrease over time.

Economics

Economic growth is defined as a long-run increase in an economy's

a. resources b. employment rate c. total output of goods and services d. level of profits e. money supply

Economics

The tradeoffs between rates of employment and inflation during the 1970s and 1980s forced economists to reassess their earlier beliefs about the Phillips curve to conclude that

a. the Phillips curve was upward sloping, not downward sloping as imagined b. rather than there being one Phillips curve, there is a set of such curves c. the expected trade-offs did not occur, meaning that policy to lower unemployment rates would not cause inflation d. the aggregate supply curve was a horizontal-vertical (two sides of a right angle) curve, as Keynesians believed e. the aggregate supply curve actually sloped downward because price levels fell whenreal GDP rose

Economics