Author Question: A principal-agent problem arises when a. only less-qualified workers apply for a job b. a firm ... (Read 63 times)

LCritchfi · **on:** Jun 30, 2018

A principal-agent problem arises when
a. only less-qualified workers apply for a job
b. a firm must find a proxy for unobservable qualities needed in employees
c. potential employees have more information about their own productivity than do prospective employers
d. a customer knows little about the service provided by a business
e. a customer knows little about the service provided by a business and is, therefore, given poor service

Question 2

Labor productivity depends on the
a. the effectiveness of government
b. the size of the economy
c. the proportion of the labor force that is unionized
d. the amount of capital
e. All of the answers are correct