Moral hazard can be avoided by:
A. employers monitoring employee effort.
B. removing the asymmetric information.
C. employers incentivizing employees to maintain consistent effort.
D. All of these statements are true.
D. All of these statements are true.
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Three hundred firms supply the market for paint. For fifty of the firms, their short-run average variable costs are minimized at $10 and short-run total costs are minimized at $15
For the remaining firms, the short-run average variable costs and short-run average total costs are minimized at $20 and $25, respectively. If each firm has a U-shaped marginal cost curve then the short-run market supply curve is A) U-shaped too B) kinked at $10 C) kinked at $15 D) kinked at $20 E) kinked at $25
Aggregate income equals: a. the sum of income earned by all laborers in the world economy
b. the sum of income earned by all workers in the private sector. c. the sum of the income earned by all the resource suppliers in an economy. d. the total income of all employees after payment of income tax. e. the total income of all employees after purchases of necessities.
The historical reallocation of labor from agriculture to manufacturing in the United States has:
A. been inflationary. B. had no effect on the average productivity of labor. C. increased the average productivity of labor. D. reduced the average productivity of
When a person gets an increase in current income, what is likely to happen to consumption and saving?
A. Consumption increases and saving increases. B. Consumption increases and saving decreases. C. Consumption decreases and saving decreases. D. Consumption decreases and saving increases.