Why do workers tend to choose low effort levels when they are compensated with fixed wage payments?
A) Workers ignore the cost of effort
B) The net compensation after deducting the cost of effort is always higher when the worker provides low effort.
C) Workers care more about the stability of income than the level of income.
D) Workers tend to be risk averse and tend to choose low-intensity alternatives.
B
You might also like to view...
A regional airport decides to extend a runway, increasing the amount of noise pollution on nearby homes. Assume that an optimal corrective tax can be applied
Should that tax be paid as compensation to the nearby homeowners? How might compensating the homeowners change their (and potentially others) incentives?
Maximum likelihood estimation yields the values of the coefficients that
A) minimize the sum of squared prediction errors. B) maximize the likelihood function. C) come from a probability distribution and hence have to be positive. D) are typically larger than those from OLS estimation.
The coefficient of determination ranges in value between 0.0 and 1.0
a. true b. false
Recently, salmonella outbreaks occurred due to the contamination of the processing of peanuts. Given this information, it is likely that:
A) The price of peanut products would rise and the quantity of peanut products produced would fall. B) The price of peanut products would rise and the quantity of peanut products produced would rise. C) The price of peanut products would fall and the quantity of peanut products produced would fall. D) The price of peanut products would fall and the quantity of peanut products produced would rise.