Author Question: An efficiency-wage premium serves the same function as a bond because, just as with a bond, the ... (Read 18 times)

mspears3

  • Hero Member
  • *****
  • Posts: 586
An efficiency-wage premium serves the same function as a bond because, just as with a bond, the premium represents
 
  A) the amount the employee loses if caught shirking.
  B) the expected value of the amount the employee loses if he shirks.
  C) the cost of monitoring the employee.
  D) the gain to the employee if he shirks.

Question 2

The benefit to employers of deferred-payments is that
 
  A) adverse selection is eliminated.
  B) employers cannot engage in any opportunistic behavior.
  C) these payments raise the cost of being fired, so more monitoring is needed.
  D) these payments raise the cost of being fired, so less monitoring is needed.



chevyboi1976

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

A

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

For a complete list of videos, visit our video library