Many art galleries keep 60% of the sale price of a painting. However, art galleries do not typically pay the artist while the painting hangs on the wall. This form of contingency contract may be efficient if
A) the artist is less risk averse than the gallery.
B) the gallery is less risk averse than the artist.
C) the artist is unable to diversify across galleries or paintings.
D) the gallery is unable to diversify across artists of paintings.
A
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Given the information in the table above, if the world equilibrium price of widgets were 40 cloths, then
A) both countries could benefit from trade with each other. B) neither country could benefit from trade with each other. C) each country will want to export the good in which it enjoys comparative advantage. D) neither country will want to export the good in which it enjoys comparative advantage. E) both countries will want to specialize in cloth.
Joan Robinson, the author of The Second Crisis of Economic Theory, argued that the content of fiscal policy is as important as its aggregate impact on the economy.
Answer the following statement true (T) or false (F)
A demand schedule
A. holds quantity constant. B. is only for a given time period. C. holds all prices constant. D. is for a given variety of goods.
As disposable income decreases, saving decreases
a. True b. False Indicate whether the statement is true or false