Author Question: Adam got a job in a multinational company. He was told during the orientation session that he will ... (Read 120 times)

lilldybug07 · **on:** Jun 29, 2018

Adam got a job in a multinational company. He was told during the orientation session that he will not be terminated for poor performance during the first six months of his work.

Adam immediately decided to put minimum effort into the job during these months. His behavior is an example of ________. A) a positive externality
B) moral hazard
C) the prisoners dilemma
D) the free-rider problem

Question 2

Jones can brew 10 gallons of lager or 5 gallons of stout every three months, or any linear combination in between. Which statement below is true?

A) It costs Jones 5 gallons of stout for every 10 gallons of lager brewed.
B) It costs Jones 1 gallon of stout for every 2 gallons of lager brewed.
C) It costs Jones 1/2 gallon of stout for every 1 gallon of lager brewed.
D) All of the above are true.