If most workers are risk adverse why do we still see many workers agreeing to contracts where their compensation is variable like commissions for magazine salesmen or car salesmen?
What will be an ideal response?
These types of contracts occur because variable compensation can help firms get better performance from their workforce.
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The floral industry in Rosevalley has a Herfindahl-Hirschman Index of 900. This implies that the flower market in Rosevalley is ________
A) not concentrated B) moderately concentrated C) highly concentrated D) dominated by a few large buyers
Fogel's (1964) work on railroads after the Civil War shows that they did not dominate the markets for steel, coal or wood
Indicate whether the statement is true or false
Those who argue that welfare programs are a drag on the economy are of the view that welfare programs funded by taxes:
a. reduce the opportunity cost of labor. b. raise the incidence of poverty and income inequality. c. raise the incentive to work. d. reduce the tax-liability of the tax-payers. e. reduce the demand for labor.
Tax cuts shift aggregate demand
a. right as do increases in government spending. b. right while increases in government spending shift aggregate demand left. c. left as do increases in government spending. d. left while increases in government spending shift aggregate demand right.