Monitoring is often used by firms in an attempt to decrease
A) shirking.
B) piece rates.
C) adverse selection.
D) signaling.
A
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A system where goods and services are exchanged directly without a common unit of account is called the:
A) commodity system. B) fiat system. C) barter system. D) none of the above.
When a country's nominal exchange rate depreciates, the price of
A) that country's goods abroad increases. B) that country's goods abroad decreases. C) foreign goods sold in the country decreases. D) that country's goods produced and sold at home decreases.
A person takes out a car loan at a bank, but actually uses the money to play the lottery. This situation is an example of which problem banks face in lending?
A) adverse selection B) moral hazard C) interest rate risk D) illiquidity
If a country was operating well below its long-run capacity (potential GDP), the initial impact of an unanticipated increase in the money supply would most likely result in an increase in
a. prices with little change in output. b. output with little change in prices. c. output and a decline in prices. d. prices and a decline in output.