The following is NOT an example of a potential monitoring solution to moral hazard
a. blocking social network sites on company computers
b. termination for failing to show up to work during the probationary period
c. GPS tracking devices in repair trucks
d. listening in on call center conversations
b
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According to the aggregate expenditure model, when faced with unwanted inventory, firms
A) do nothing and wait for equilibrium to be restored. B) are forced to go out of business. C) immediately cut prices. D) decrease production. E) increase production.
The trade-off between the production of one good and the production of another good can change over time because of technological advances
a. True b. False Indicate whether the statement is true or false
If Japan has an absolute advantage over the United States in making TVs, then Japan:
A. probably sells TVs to the United States. B. it will have no reason to trade with the US. C. produces more TVs than the United States using the same resources. D. has the ability to produce TVs at a lower opportunity cost than the United States.
A monopsony exists when
A. there is a single seller with no rivals in an input market. B. there is a labor union controlling labor supply in a labor market. C. there is a single buyer with no rivals in an input market. D. employers in a labor market face a horizontal labor supply curve.