With full information any contract will lead to production efficiency

Indicate whether the statement is true or false

False. A hire or revenue sharing contract will not provide the incentives for the agent to maximize joint profit.

Economics

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Purchasing power parity means that the expected exchange rate is such that the returns from investing in two nations are equal

Indicate whether the statement is true or false

Economics

An escalation or automatic adjustment provision in a purchase contract for some good deters opportunistic behavior and automatically reallocates risk as its price changes

Indicate whether the statement is true or false

Economics