A payday loan company has decided to open several new locations in the city. To decide where to open these locations it hires consultants and must decide how to pay them. To align incentives, it should to pay the consultants
a. Per store opened
b. A percentage of the profit earned per new store
c. A fixed contract amount
d. All of the above
b
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To say that people make marginal decisions means that
a. they usually wait until the last minute before making a decision to buy b. they weigh the additional costs and additional benefits of various activities before they make a decision c. most people just barely get by on the incomes they earn and live from day to day on the very edge of subsistence d. given a choice, most people would prefer to make their own decisions concerning the things that affect their lives e. they consider the total cost and benefit of various activities before they make a purchase
The target rate of inflation for the ECB is
(a) Above 2%; (b) Below, but close to, 2%; (c) 0%; (d) None of the above, because the ECB targets a rate of deflation.
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.The outcome of the game in the figure shown will be:
A. Joe and Sarah both put forth low effort. B. Joe puts forth high effort and Sarah puts forth low effort. C. Joe and Sarah both put forth high effort. D. Joe puts forth low effort and Sarah puts forth high effort.
The table given below reports the sales value at each stage of production of the soft drink, Pepsi. Table 5.3 Production Stage Sales Value Sugar cane $0.05 Processed sugar $0.10 Wholesale Pepsi $0.40 Pepsi in a vending machine $0.60 Refer to Table 5.3. If Pepsi was the only good produced in the economy, then what would be the value of GDP, according to the expenditures approach?
A) $1.05 B) $0.05 C) $0.20 D) $0.60 E) $0.40