If a firm has established monitoring devices that have a 50% chance of detecting shirking, and an employee gains $5,000 from shirking, the employer can deter shirking by having employees post a bond equal to
A) $2,500.
B) $5,000.
C) $10,000.
D) $50,000.
C
You might also like to view...
As currently calculated, the CPI tends to overstate the true inflation rate because
A) we cannot know what the true inflation rate is. B) it fails to correctly measure quality changes for some products. C) the market basket selected is inappropriate. D) the market basket fails to weigh housing costs sufficiently.
A __________ in the balance of payments means that we are paying out more money abroad than we are taking in, resulting in a(n) __________ of foreign exchange value relative to the dollar
A) deficit; depreciation B) surplus; appreciation C) surplus; depreciation D) deficit; appreciation
Suppose Eddie's demand curve for text messages is T = 150 - 500Pt, where T stands for the number of text messages and Pt represents the price of text messages. What is Eddie's consumer surplus if Pt = $0.20 per message?
A. $0.50 B. $1.00 C. $2.00 D. $2.50
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C