A baseball player who has signed a long-term contract with his ...

[joe]

A baseball player who has signed a long-term contract with his club and then constantly says he is injured and cannot play is an example of ________.
 
  A) the principal-agent problem
  B) marginal returns to work
  C) the law of diminishing returns
  D) inefficient hiring practices

Question 2

The reduction in consumer and producer surplus that results from underproduction is called
 
  A) an internal cost.
  B) a deadweight loss.
  C) a quantity loss.
  D) None of the above answers is correct.

[Leostella20]

Answer to Question 1

A

Answer to Question 2

B