It is not uncommon for businesses to pay contingent bonuses that depend on performance. Contingent bonuses are an example of what the text calls:
A. an incentive-compatible contract.
B. a network externality.
C. X-inefficiency.
D. a winner-take-all contract.
Answer: A
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Explain the following figure
What will be an ideal response?
Which criterion for suitability as a medium of exchange do Federal Reserve Notes meet?
A) They are of standardized quality. B) They are durable. C) They are acceptable to most traders. D) Federal Reserve Notes meet all of the criteria for suitability as a medium of exchange.
The nominal exchange rate is 32 Russian rubles per dollar. The price of a bushel of wheat is 260 rubles in Russia and $7 in the U.S. A. What is the real exchange rate? Show your work. B. Can arbitragers make a profit? C. If your answer to B is yes, where would arbitragers buy and where would they sell
What is the opportunity cost of going from point C to point D?
