Which of the following compensation schemes can be explained as an attempt to solve a principal-agent problem?
A) Real estate agents are paid on a strict commission basis; if they don't sell a client's listed property they don't get paid.
B) Personal injury lawyers often work on a contingency basis. If the lawyer wins the case they receive a significant share of the award; if the lawyer doesn't win the case the lawyer doesn't get paid.
C) Traveling sales people, who are costly and difficult to monitor, generally receive a significant share of their compensation in the form of commissions or bonuses for meeting sales targets.
D) All of the above compensation schemes attempt to solve a principal-agent problem.
D
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Competitive markets tend to eliminate economic discrimination, but there are many historical examples of firms that hired few, or no, black or female workers
Which of the following is not a reason for the persistence of this form of discrimination? A) Some white consumers were unwilling to buy from companies that employed black workers. B) If discrimination makes it difficult for a member of a group to be hired in a particular occupation, there is less incentive for members of the group to be trained to enter that occupation. C) Laws passed by the federal government made it more expensive to hire black or female workers. As a result, it was less expensive for employers to hire mostly white male workers. D) In many cases, white workers refused to work with black workers.
If the required reserve ratio is 20 percent, banks loan out all excess reserves, people hold no currency, and the Fed sells $5,000 worth of bonds to banks, what is the ultimate impact on the money supply?
a. The money supply will increase by $5,000. b. The money supply will decrease by $5,000. c. The money supply will increase by $25,000. d. The money supply will decrease by $25,000. e. The money supply will not change.
.Which of the following best describes the crowding-out effect?
What will be an ideal response?
Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States is represented by the following set of equations:QS = -60 + 3PQD = 390 - 2PIf the United States engages in free trade and the international price of skateboards is $75, it would import ________ skateboards from the rest of the world.
A. 95 B. 85 C. 65 D. 75