To keep employees from shirking, invest in greater monitoring
a. when monitoring is expensive relative to its benefits
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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Which of the following statements is NOT true about money?
A) Money can only be coins and paper. B) Anything that serves as a medium of exchange, as a unit of accounting, as a store of value, and as a standard of deferred payment can be called money. C) Money is any medium that is universally accepted by sellers and creditors. D) Money is a standard of deferred payment.
For a firm producing in a perfectly competitive product market, the marginal revenue product of labor eventually
a. falls due to diminishing marginal returns to labor b. rises due to diminishing marginal returns to labor c. falls due to a falling product price d. falls due to a rising product price e. rises due to falling marginal productivity of labor
Which of the following is a difference between a bond and a stock? a. The owner of a bond can sell it many times, while a stock remains with its first owner
b. Typically, governments and corporations borrow through a bond market, while a stock market is the most common source of funds for households. c. The owner of a bond earns interest on the money that is paid to buy it, while the owner of a stock owns an equity in the company that issues the stock. d. The owner of a bond owns an equity in the company that issues the bond, while the owner of a stock earns interest on the money that is paid to buy it.
Which of the following items is recorded in the financial account?
A. A Chinese businessman imports Ford automobiles from the United States. B. A U.S. tourist spends money on a trip to China. C. The New York Yankees are paid $10 million by the Chinese to play an exhibition game in Beijing, China. D. Ford Motor Company of the United States provides part of the financing for a new automobile factory in China.