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Author Question: Which of the following is a source of inequality in incomes? a. job preferences b. willingness to ... (Read 97 times)

sarasara

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on: Jun 30, 2018
Which of the following is a source of inequality in incomes?
 a. job preferences
 b. willingness to take risks
 c. differences in investment in human capital.
  d. All of the above are correct.

Question 2

Why are most contracts incomplete?


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miss_1456@hotmail.com

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Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

As far as implicit contracts are concerned, at the start of the relationship both parties are aware that the future will almost surely bring changes, and they cannot currently envision how they will react to these changes. If the relationship is worth maintaining they will have to respond to unforeseen events by reformulating the affected parts of their implicit agreement. In case of explicit contracts, usually the range of possible worker tasks is too large, the worker's value in different tasks is hard to determine, and changes in markets and technologies will change the list of possible tasks.


sarasara

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Reply 2 on: Jun 30, 2018
Gracias!

daiying98

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Reply 3 on: Yesterday
Excellent

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