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Author Question: In a world of perfect certainty, sharecropping would be less efficient than a farm owner working his ... (Read 45 times)

aabwk4

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on: Jun 30, 2018
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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Reply #1 on: Jun 30, 2018
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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aabwk4

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Reply #2 on: Jun 30, 2018
Thank you :)


tdewitt

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Reply #3 on: Jun 30, 2018
Happy to help you


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