There is less of a principal-agent problem between managers and apple pickers than between managers and secretaries because
a. apple pickers naturally work harder
b. secretaries get paid less than their worth
c. productivity is easier to measure in apple picking than in secretarial services
d. a secretary's marginal product is easier to estimate than an apple picker's
e. managers can watch apple-pickers more closely than they can secretaries
C
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With a negative income tax featuring an $8,000 minimum level of income and a 20% tax rate, a household earning zero dollars would receive a subsidy of:
a. zero b. $1,600 c. $6,400 d. $8,000
Marginal cost equals (i) change in total cost divided by change in quantity produced. (ii) change in variable cost divided by change in quantity produced. (iii) the average fixed cost of the current unit
a. (i) and (ii) only b. (ii) and (iii) only c. (i) only d. (i), (ii), and (iii)
If the costs of coordination and enforcement are ________ the surplus lost to the externality, then ________.
A. lower than; a private solution will not work B. higher than; a private solution will work C. higher than; a private solution will not work D. None of these statements is true.
The federal funds rate is the rate banks charge one another for overnight loans.
Answer the following statement true (T) or false (F)