Explain how more than one possible state of nature affects contract choices
What will be an ideal response?
The uncertainty of the state of nature introduces the risk of random events. This forces principals and agents to incorporate efficiency of risk bearing into contracts.
Economics
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The above table has data from the nation of Atlantica. Based on these data, the amount of autonomous consumption is
A) $7.5 trillion. B) $0.5 trillion. C) $6.0 trillion. D) $1.0 trillion. E) $1.5 trillion.
Economics
In a small open economy, when exports exceed imports, all of the following are true EXCEPT
A) net capital outflows are positive. B) net exports are positive. C) domestic investment exceeds domestic saving. D) domestic output exceeds spending.
Economics