Author Question: An efficiency-wage premium serves the same function as a bond because, just as with a bond, the ... (Read 15 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?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

For a complete list of videos, visit our video library