Author Question: An efficiency-wage premium serves the same function as a bond because, just as with a bond, the ... (Read 78 times)

mspears3

  • Hero Member
  • *****
  • Posts: 586
An efficiency-wage premium serves the same function as a bond because, just as with a bond, the premium represents
 
  A) the amount the employee loses if caught shirking.
  B) the expected value of the amount the employee loses if he shirks.
  C) the cost of monitoring the employee.
  D) the gain to the employee if he shirks.

Question 2

The benefit to employers of deferred-payments is that
 
  A) adverse selection is eliminated.
  B) employers cannot engage in any opportunistic behavior.
  C) these payments raise the cost of being fired, so more monitoring is needed.
  D) these payments raise the cost of being fired, so less monitoring is needed.



chevyboi1976

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

A

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

Long-term mental and physical effects from substance abuse include: paranoia, psychosis, immune deficiencies, and organ damage.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

For a complete list of videos, visit our video library