A model in which workers won't be concerned about the possibility of being fired if they don't work hard, because their wage is so low, is called
A) a cost—benefit model.
B) a job—stress model.
C) a gift—exchange model.
D) a shirking model.
D
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Economists like Hernando de Soto feel that a ________ is the key to economic development.
A. stable currency B. strong titling system C. strong currency D. strong national defense
Which of the following is NOT related to the government's political function of income redistribution?
A) providing money transfer payments B) excise tax on cigarettes C) Social Security D) in-kind transfers
The situation where politicians make decisions that will raise their chances of reelection, even if those decisions are detrimental to the general public, is referred to as the:
A. Moral hazard problem B. Principal-agent problem C. Adverse selection problem D. Common good problem
Refer to the following figure. At a price of $10, the point elasticity of demand for D3 is ________ and marginal revenue is ________.
A. -0.5; negative B. -5; positive C. -0.2; negative D. -1; zero