Which of the following may result when workers have much better information about their own productivities than employers have?
a. discrimination
b. natural selection
c. principal-agent problems
d. unemployment
e. adverse selection
E
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Trade barriers are politically popular because
A) they are a way to avoid trade wars and still protect domestic producers. B) people recognize their use as a negotiating tool in international relations. C) their benefits are widespread, while their costs are highly concentrated. D) their benefits are concentrated, while their costs are widespread.
Suppose the daily demand for Coke and Pepsi in a small city are given by QC = 90 - 100PC + 400(PP - PC) and QP = 90 - 100PP + 400(PC - PP), where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can for both Coke and Pepsi. What is the Nash equilibrium price for Coke?
A. $0.016 B. $0.45 C. $0.53 D. $0.38
It is possible for one country to have a comparative advantage in the production of all products
a. True b. False
William Safire argues that a unilateral free trade policy is a disaster if
a. the governments of the nations' trading partners practice "helpfulism." b. infant industries are allowed to expire. c. the national defense is endangered. d. it hurts the poor.