To keep employees from shirking, you can invest in greater monitoring

a. because monitoring is inexpensive
b. especially when monitoring is not very efficient
c. when employees respond well to incentive contracts
d. when incentives solve both moral hazard and adverse selection problems with employees

a

Economics

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When a market is in equilibrium, both buyers and sellers do not perceive a benefit from changing their behavior. Why?

What will be an ideal response?

Economics

One objection to supply-side tax cuts is that demand-side changes

a. are smaller than supply-side changes. b. and supply-side changes are about equal. c. are more unpredictable than supply-side changes. d. are larger than supply-side changes.

Economics