This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A key aspect of the principal-agent problem is that A) the principal cannot perfectly monitor the ... (Read 98 times)

SAVANNAHHOOPER23

  • Hero Member
  • *****
  • Posts: 542
on: Jul 1, 2018
A key aspect of the principal-agent problem is that
 
  A) the principal cannot perfectly monitor the agent's actions.
  B) the principal can perfectly monitor the agent's actions.
  C) the output level does not depend on the agent's actions.
  D) the principal is always risk averse.

Question 2

We can say that a contract is able to prevent moral hazard when
 
  A) it eliminates production inefficiencies due to moral hazard without shifting risk to risk-averse people.
  B) it eliminates production inefficiencies due to moral hazard without shifting risk to risk-loving people.
  C) it shifts risk to risk-loving people.
  D) it eliminates production inefficiencies due to moral hazard and shifts risk to risk-averse people.
Microeconomics ¦ Perloff ¦ 8th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

aprice35067

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jul 1, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly


SAVANNAHHOOPER23

  • Member
  • Posts: 542
Reply 2 on: Jul 1, 2018
Thanks for the timely response, appreciate it

apple

  • Member
  • Posts: 352
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Cognitive behaviour involves problem-solving ability. Cognitive behaviour involves problem-solving ability.
How to solve any percent concentration problem How to solve any percent concentration problem
Answer to Trig problem Answer to Trig problem
Identification of the numbers in the Word Problem Identification of the numbers in the Word Problem
Problem Problem
Problem Solving Problem Solving
Video: Dissociative Disorders (Part 2)

For a complete list of videos, visit our video library