Suppose the principal offers to share a percentage of the profit with the agent. Such a contract
A) will yield the same income for the agent as a hire contract would.
B) is incentive compatible.
C) creates a production inefficiency.
D) would not be acceptable to any agent.
B
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If you buy a put option on treasury futures at 110, and at expiration the market price is 115, the ________ will ________ exercised
A) call; be B) put; be C) call; not be D) put; not be
The above figure depicts the Edgeworth box for two individuals, Al and Bruce. Points a and b
A) are most likely to reflect the final allocations after trading. B) are least likely to reflect the final allocations after trading. C) are equally likely to reflect the final allocations after trading than other points on the contract curve. D) are definitely not the final allocations after trading.
The methods of financing state school systems have never been judged to be unconstitutional
Indicate whether the statement is true or false
Which of the following statements best serves as a summary of the other statements?
a. Low income can mean poor nutrition during the formative years, which can retard mental and physical development b. Low income and low productivity may reinforce each other in a cycle of poverty c. Low productivity obviously results in low income d. Low income means less saving and less saving means less investment in human and physical capital e. Poverty can result in less education, less capital formation, a poor diet, and little health care