This topic contains a solution. Click here to go to the answer

Author Question: A key aspect of the principal-agent problem is that A) the principal cannot perfectly monitor the ... (Read 80 times)

SAVANNAHHOOPER23

  • Hero Member
  • *****
  • Posts: 542
A key aspect of the principal-agent problem is that
 
  A) the principal cannot perfectly monitor the agent's actions.
  B) the principal can perfectly monitor the agent's actions.
  C) the output level does not depend on the agent's actions.
  D) the principal is always risk averse.

Question 2

We can say that a contract is able to prevent moral hazard when
 
  A) it eliminates production inefficiencies due to moral hazard without shifting risk to risk-averse people.
  B) it eliminates production inefficiencies due to moral hazard without shifting risk to risk-loving people.
  C) it shifts risk to risk-loving people.
  D) it eliminates production inefficiencies due to moral hazard and shifts risk to risk-averse people.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

aprice35067

  • Sr. Member
  • ****
  • Posts: 337
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly




SAVANNAHHOOPER23

  • Member
  • Posts: 542
Reply 2 on: Jul 1, 2018
:D TYSM


nguyenhoanhat

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Excellent

 

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

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.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

For a complete list of videos, visit our video library