Which of the following practices would indicate that an employer is trying to overcome a moral-hazard problem with his employees?
a. The employer pays his workers wages that are unusually high for the industry and region.
b. The employer pays his employees year-end bonuses depending to how well the business does and his observations of the employees' efforts.
c. The employer has voluntarily removed video cameras from the factory floor.
d. Both A and B are correct.
d
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In the above table, which tax plan is proportional?
A) only plan A B) only plan B C) only plan C D) both plan A and plan C
The Federal Reserve can increase aggregate demand by ________.
A. selling government securities in the open market B. reducing the discount rate C. reducing the money supply D. raising the reserve requirement
Predatory dumping by foreign firms is a very common phenomenon in U.S. markets
Indicate whether the statement is true or false
Theories of international economics from the 18th and 19th Centuries are
A) not relevant to current policy analysis. B) only of moderate relevance in today's modern international economy. C) highly relevant in today's modern international economy. D) the only theories that actually relevant to modern international economy. E) not well understood by modern mathematically oriented theorists.