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Author Question: Mark works as a business development officer for a leading electronics company. His main task is to ... (Read 102 times)

mrsjacobs44

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Mark works as a business development officer for a leading electronics company. His main task is to meet potential clients in their respective offices and try to enter into a business deal with them.
 
  Irrespective of the number of clients approached and deals made, Mark earns a fixed salary every month. Because his boss does not cross-check how many clients he meets in a day, Mark often does not meet all the clients that he is supposed to. His behavior is an example of ________. A) adverse selection
  B) moral hazard
  C) a positive externality
  D) a pecuniary externality

Question 2

The government of Lithasia has decided to set a minimum price for certain agricultural products in order to safeguard the interests of farmers. This is an example of a ________.
 
  A) price floor
  B) price ceiling
  C) Pigouvian tax
  D) Pigouvian subsidy



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JCABRERA33

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Answer to Question 1

B

Answer to Question 2

A




mrsjacobs44

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Reply 2 on: Jun 29, 2018
Wow, this really help


kjohnson

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Reply 3 on: Yesterday
Gracias!

 

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