Author Question: In a world of perfect certainty, sharecropping would be less efficient than a farm owner working his ... (Read 95 times)

aabwk4

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In a world of perfect certainty, sharecropping would be less efficient than a farm owner working his own farm because
 
  (a) sharecroppers receive only half of their marginal product.
  (b) paying a worker a wage gives him or her an incentive to shirk.
  (c) sharecroppers are exploited by landlords.
  (d) renting farmland concentrates risk on the renters.
  (e) all of the above.

Question 2

What potential conflict exists between attracting foreign capital and policies aimed at economic recovery?
 
  What will be an ideal response?



tdewitt

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Answer to Question 1

A

Answer to Question 2

Key role of interest rates. To attract foreign capital - especially during economic uncertainties - requires higher interest rates, but high rates could deter investment and slow recovery.



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