In a contingent contract
A) the risk neutral party bears the risk.
B) monitoring is not possible.
C) the principal will be at a disadvantage.
D) the payoffs are dependent upon another variable, such as revenue or profit.
D
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About what percentage of the U.S. labor force works under union wage contracts?
A) 50 percent B) 35 percent C) 25 percent D) 10 percent
You are staying in London over the summer and you have a number of dollars with you. If the dollar appreciates relative to the British pound, then other things the same,
a. the dollar would buy more pounds. The appreciation would discourage you from buying as many British goods and services. b. the dollar would buy more pounds. The appreciation would encourage you to buy more British goods and services. c. the dollar would buy fewer pounds. The appreciation would discourage you from buying as many British goods and services. d. the dollar would buy fewer pounds. The appreciation would encourage you to buy more British goods and services.
Bacon is used to produce bacon cheeseburgers, and the price of bacon decreases. In the market for bacon cheeseburgers you would expect that
A. the supply of bacon cheeseburgers would decrease and the price of bacon cheeseburgers would increase. B. the demand for bacon cheeseburgers would decrease and the price of bacon cheeseburgers would fall. C. the supply of bacon cheeseburgers would increase and the price of bacon cheeseburgers would decrease. D. the demand for bacon cheeseburgers would increase and the price of bacon cheeseburgers would increase.
When an individual quits his/her job and decides to stay at home for a while, the labor-force participation rate
A. decreases. B. stays the same. C. increases. D. may increase or decrease, depending on the length of time he/she stays at home.