The use of incentive payments for salespeople combats
A) both adverse selection and moral hazard.
B) neither adverse selection nor moral hazard.
C) adverse selection but not moral hazard.
D) moral hazard but not adverse selection.
A
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Despite the fact that most votes have virtually no impact on the outcome of a vote, and knowing people incur opportunity costs to vote, we recognize that people vote for all of the following reasons except they:
A. feel pressure to fulfill their civic duty. B. altruistically decide to contribute to the democratic process by voting. C. get utility from participating in a civic event. D. are obligated legally to do so.
On a given day, the exchange rate for one U.S. dollar is 1.2 Canadian dollars and 0.5 British pounds. Exactly six months later, the exchange rate for one U.S. dollar is 1.1 Canadian dollars and 0.7 British pound. From the information given, we can say that:
a. the dollar has appreciated relative to Canadian dollars and depreciated relative to British pounds. b. the dollar has appreciated relative to British pounds and depreciated relative to Canadian dollars. c. the dollar has appreciated relative to both British pounds and Canadian dollars. d. the dollar has depreciated relative to both British pounds and Canadian dollars. e. there is no change in the relative value of the U.S. dollar.
In the classical view of the credit market, a rise in saving produces a rise in investment via a
A) rising interest rate. B) falling interest rate. C) rising price level. D) falling price level.
Refer to Scenario 7.7 below to answer the question(s) that follow. SCENARIO 7.7: A lawn service company has the following production possibilities. With one, two, three, and four workers, the company can mow 4, 9, 12, and 14 lawns per day, respectively. Refer to Scenario 7.7. The marginal product of the fourth worker is
A. 2. B. 3. C. 12. D. 14.