The moral-hazard problem and the desire of firms to lessen that problem serve as a plausible explanation for a firm paying above-equilibrium wages to its workers
a. True
b. False
Indicate whether the statement is true or false
True
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In the United States between 1981 and 2012, the
A) nominal wage rate increased more than the real wage rate. B) real wage rate increased more than the nominal wage rate. C) nominal and real wage rates increased the same amount. D) real and the nominal wage rates decreased the same amount. E) nominal wage rate decreased and the real wage rate increased.
Fred and Ann both decide to see the same movie when they are given free movie tickets. We know that
A) both bear an opportunity cost since they could have done other things instead of see the movie. B) both bear the same opportunity cost since they are doing the same thing. C) the cost of going to the movie is greater for the one who had more choices to do other things. D) neither bears an opportunity cost because the tickets were free.
What is a primary determinant of the asset demand for money? I. the interest rate II. the opportunity cost of holding money III. the supply of money
A) I only B) III only C) both I and II D) both II and III
For any given price, the more elastic the demand for a product is, the greater will be the consumer surplus
a. True b. False