To keep employees from shirking, you can invest in greater monitoring
a. even though monitoring is expensive
b. especially when monitoring is efficient
c. when employees respond well to incentive contracts
d. when incentives solve both moral hazard and adverse selection problems with employees
b
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen asĀ
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
The demonstration effect suggests that people will save less when they
A. control their spending in order to save more when the real interest rate increases. B. recognize that the real interest rate has increased. C. base their spending decisions (and consequently their saving decisions) on spending decisions of others who spend more than they do. D. base their saving decisions on their projections of income and spending needs over their lifetime.
If insurance is available on an activity:
A) more of that activity will occur B) less of that activity will occur C) investors will be less likely to hedge D) it increases the risk of engaging in that activity
About what percent of the world's poorest people are female?
a. 30 b. 50 c. 70 d. 90