Incentive contracts typically result in higher risk-related compensation to agents on average,
a. even so, they are always worth it
b. this does not affect their desirability
c. as a consequence, they may cost more than the problem they solve
d. therefore, they are never worth it
c
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Economists believe that individuals:
A. have varying tastes for taking on financial risks, but are risk-averse in general. B. have the same tastes for taking on financial risks, and are risk-seekers in general. C. have varying tastes for taking on financial risks, but are risk-seekers in general. D. have the same tastes for taking on financial risks, and are risk-averse in general.
Which combination of the following properties rules out indifference curves that intersect one another?
A. Completeness and diminishing marginal rate of substitution B. More-is-better and diminishing marginal rate of substitution C. Transitivity and more-is-better D. Completeness and more-is-better
Just-in-time production and inventory control can result in:
A. excess inventories that mess up production schedules. B. a fall in inventories and an increase in efficiency. C. a lack of coordination between suppliers and retailers. D. decreased risk bearing on the part of retailers.
The existence of scarcity in economics comes from
A) resources being limited in supply. B) people being stupid. C) governments being corrupt. D) the rich controlling most resources.