To keep employees from shirking, invest in greater monitoring
a. when monitoring is expensive relative to its benefits
b. especially when monitoring is efficient
c. when employees respond well to incentive contracts
d. when incentives solve both moral hazard and adverse selection problems with employees
b
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The major factor contributing to the depreciation of the dollar in 2007-2008 was:
A) higher U.S. interest rates resulting in lower capital outflows. B) lower U.S. interest rates resulting in higher capital outflows. C) higher U.S. interest rates resulting in higher capital outflows. D) lower U.S. interest rates resulting in lower capital outflows.
All else being equal, a permanent decrease in the saving rate in a steady-state economy would cause
A) an increase in the capital—labor ratio and an increase in consumption per worker. B) an increase in the capital—labor ratio and a decrease in consumption per worker. C) a decrease in the capital—labor ratio and a decrease in consumption per worker. D) a decrease in the capital—labor ratio and an increase in consumption per worker.