The method of payment that a principal can use to elicit effort from an agent is called:
a. a contract.
b. an order.
c. an incentive.
d. garbling.
A
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What does monopolistic competition have in common with perfect competition?
A) a large number of firms and freedom of entry and exit B) a standardized product C) product differentiation D) the ability to earn an economic profit in the long run E) barriers to exit but no barriers to entry
In which of the following situations would the minimum efficient scale of operation provide little or no guidance regarding how many firms should serve the market to minimize production costs?
A) When the LRAC curve slopes downward over the relevant range of output. B) When the LRAC curve hits its minimum point at a relatively low level of output and then increases and the demand for output is quite large. C) When the LRAC curve hits its minimum point at a relatively low level of output but then remains constant as the scale of operation is increased and the demand for output is quite large. D) When the LRAC curve initially increases and then decreases beyond some point.
When it comes to productivity, some economists argue that
A) unions have caused a decrease in productivity by excessive staffing and makework requirements. B) through the use of featherbedding unions have been responsible for productivity increases. C) the passage of the Taft-Hartley Act has led to a significant decrease in productivity. D) the union's insistence on profitability laborsaving devices has led to an increase in productivity.
The expenditure approach to measuring GDP sums
A) consumption, investment, government purchases, and net exports. B) sales, revenues, income, and wages. C) profits, compensation of employees, consumption, and investment. D) net exports, consumption, wages, and salaries. E) consumption, interest, net exports, and federal government purchases