The following is NOT an example of a potential monitoring solution to moral hazard
a. a pre-hire typing test for clerical employees
b. closed circuit TVs throughout a warehouse
c. GPS tracking devices in repair trucks
d. listening in on call center conversations
a
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If the natural monopoly shown in the figure above is unregulated, then it will charge a price of
A) $2. B) $4. C) $5. D) $6.
How does money make the circular flow model more efficient
A. Neither the product nor resource market can exist without money. B. Money gives firms an advantage over households, since they have more money. C. Money makes the product market more important than the resource market D. Having a common medium of exchange, like money, eliminates the need to barter.
Which of the following is a difference between a binding and a not binding price floor?
a. A binding price floor causes a surplus in the market, while a not binding price floor causes a shortage in the market. b. A binding price floor causes a surplus in the market, while a not binding price floor has no impact on the market forces. c. A binding price floor causes a shortage in the market, while a not binding price floor has no impact on the market forces. d. A binding price floor causes a shortage in the market, while a not binding price floor causes a surplus in the market.
The most important dimension of capital is
A. time. B. the interest rate. C. depreciation. D. immediate returns.