Microeconomics

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When is a piece-rate contract generally used? A) It is used when output but not labor can be ... Started by LaDunn	1 Replies 36 Views	Jul 1, 2018 by sylvia
Profit-sharing contracts are designed to A) mitigate the moral hazard problem. B) be fair with ... Started by mcmcdaniel	1 Replies 36 Views	Jul 1, 2018 by amcvicar
With full information any contract will lead to production efficiency. Indicate whether the ... Started by silviawilliams41	1 Replies 67 Views	Jul 1, 2018 by Andromeda18
Sam is suing someone in court for 10,000. The probability that Sam will lose the case is 1/h where h ... Started by anshika	3 Replies 43 Views	Jul 1, 2018 by randomguy133
If information is asymmetric, explain why the hire contract is not efficient in production and a ... Started by maegan_martin	1 Replies 175 Views	Jul 1, 2018 by anyusername12131
Sarah's demand for routine medical visits is q = 10 - 0.2p when she is healthy and q = 20 - 0.2p ... Started by leo leo	1 Replies 66 Views	Jul 1, 2018 by dawsa925
Monitoring is often used by firms in an attempt to decrease A) shirking. B) piece rates. C) ... Started by Alainaaa8	1 Replies 71 Views	Jul 1, 2018 by Bison
Which of the following workers is most likely to be asked to post a bond? A) construction ... Started by rl	1 Replies 78 Views	Jul 1, 2018 by yasmin
The benefit to employers of deferred payments is that A) adverse selection is eliminated. B) ... Started by Awilson837	1 Replies 69 Views	Jul 1, 2018 by Perkypinki
A profit-maximizing firm that uses an efficiency wage and monitors will increase the wage it pays ... Started by nevelica	1 Replies 71 Views	Jul 1, 2018 by kmb352
If all firms pay an efficiency wage, then A) there is no cost to shirking because the shirking ... Started by folubunmi	1 Replies 76 Views	Jul 1, 2018 by swimkari
In 2008, foreclosures reached a record high. Which of the following is NOT a possible reason for ... Started by tichca	3 Replies 56 Views	Jul 1, 2018 by cswans24
A firm uses an efficiency wage scheme to deter workers from shirking. Suppose a risk-neutral worker ... Started by Capo	1 Replies 127 Views	Jul 1, 2018 by atrochim
When shirking at the workplace occurs, increased monitoring of workers is the only effective way to ... Started by Beheh	1 Replies 99 Views	Jul 1, 2018 by enass
Suppose the probability of an employee being caught shirking, q, is a function of the employer's ... Started by captainjonesify	1 Replies 104 Views	Jul 1, 2018 by 31809pancho
Suppose employees pay a bond of 1,000 to an employer. The gain from shirking is 400. Monitoring ... Started by darbym82	1 Replies 78 Views	Jul 1, 2018 by Chelseyj.hasty
Workers can reduce the chance of an employer lying by A) obtaining more information about the ... Started by PhilipSeeMore	1 Replies 140 Views	Jul 1, 2018 by isabelt_18
A deferred payment scheme is more likely to be accepted by a worker if A) the firm has a ... Started by darbym82	1 Replies 54 Views	Jul 1, 2018 by aprice35067
Assume a firm is run as a zero-profit enterprise. Which of the following would be TRUE? A) There ... Started by wenmo	1 Replies 35 Views	Jul 1, 2018 by kaillie
Including an employee representative on the board of directors reduces the possibility of ... Started by B	3 Replies 38 Views	Jul 1, 2018 by hramirez205
One way to prevent workers from shirking is to A) hire only workers who are predisposed toward ... Started by geoffrey	1 Replies 57 Views	Jul 1, 2018 by kishoreddi
What is one potential problem with offering a choice of contracts to two different employees? A) ... Started by RRMR	1 Replies 54 Views	Jul 1, 2018 by Rilsmarie951
If a firm hires lazy employees, A) it must pay them differently or hard-working employees will ... Started by james9437	1 Replies 107 Views	Jul 1, 2018 by Anna
To induce an agent to work hard, a principal may offer the agent a bonus, in other words, an extra ... Started by bb	1 Replies 86 Views	Jul 1, 2018 by jackie
A good salesperson can sell 200,000 worth of goods, while a poor one can sell only a smaller amount ... Started by a0266361136	1 Replies 104 Views	Jul 1, 2018 by Zack0mack0101@yahoo.com