Suppose that you are a manager. You are considering whether or not to monitor employees with the payoffs in the normal-form game shown below.ManagerWorker??WorkShirk?Monitor-1,11,-1?Don't Monitor1,-1-1,1What should the manager do to solve the shirking problem?
A. Never monitor.
B. Always monitor.
C. Engage in "random" spot checks of the workplace.
D. Sincerely tell workers not to shirk.
Answer: C
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Under a fixed exchange rate system, if the inflation rate of the United States exceeds the inflation rate of other nations, the
A) dollar will depreciate. B) dollar will appreciate. C) United States will develop a trade surplus. D) United States will develop a trade deficit.
Refer to Figure 28-9. A follower of the new classical macroeconomics would argue that ________ like that pursued by Paul Volcker in 1979, would result in a movement from C to A
A) expansionary fiscal policy B) contractionary monetary policy C) contractionary fiscal policy D) expansionary monetary policy
The purchase of a virtual item from an online company with a virtual currency causes the nation's:
a. Monetary base to rise. b. M2 money supply to rise. c. M2 money multiplier to rise. d. Monetary base to remain the same.
During an economic upturn when consumer income rises, the demand for caviar increases and the demand for hummus decreases. This implies that caviar
A. is a normal good and hummus is an inferior good. B. is an economic bad and hummus is an economic good. C. and hummus are complements. D. is an inferior good and hummus is a normal good.