To keep employees from shirking, you can invest in greater monitoring
a. even though monitoring is expensive
b. especially when monitoring is not very efficient
c. when employees respond well to incentive contracts
d. when incentives fail to solve either moral hazard and adverse selection problems with employees
d
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A corporation's market capitalization is best described as
A) the total value of its stocks and bonds. B) the total value of its common and preferred stock. C) its total profit for a particular year. D) its average profit over a period of years.
Rent controls often have adverse effects, including
A) too much housing in a community. B) deterioration in the quality of existing rental units. C) too much construction of new rental units in the community. D) income transfers from the poor to landlords.
According to the graph shown, if this economy were to open to trade, domestic prices would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. remain $16 for domestically produced goods, and be $23 for those units imported.
B. increase to $23 for all units.
C. remain $16, with more units sold overall.
D. decrease to $11 for all units.
The natural rate of unemployment
a. is constant over time. b. varies over time, but can't be changed by the government. c. is the unemployment rate that the economy tends to move to in the long run. d. depends on the rate at which the Fed increases the money supply.