If good salespeople are extremely risk averse, then a choice between a fixed-fee contract and a contingent contract
A) avoids a moral hazard.
B) will result in all job candidates choosing the contingent contract.
C) will result in an efficient contract.
D) may not be a good screening device.
D
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An interest rate ceiling is likely to cause
a. inflation b. optimal allocation of investment c. increased opportunities for poor people to get loans d. higher savings e. all of the above
In the long run, a perfect competitor
A) earns positive profits but will not make losses. B) earns positive economic profits. C) earns zero economic profits. D) produces at its shutdown point.
Sometimes the only information that is available with the employers when they hire someone is information that may be imperfectly related to productivity in general and may not apply to a particular person at all
a. True b. False Indicate whether the statement is true or false
When a country is a net borrower from abroad, they will have a(n) _____________ account deficit.
a. current b. trade c. cash d. overall