Suppose that Jesse Eisenberg had been offered a bigger and better part in another movie and that to hire him for The Social Network, the producer had to double Jesse's pay
What incentives would have changed? How might the changed incentives have changed the choices that people made?
The higher pay would have increased Mr. Eisenberg's incentive to make The Social Network rather than the other movie and perhaps affected his choice to make The Social Network rather than the other movie. The higher pay would have increased the incentive of the producer to decrease the expense of other aspects of the movie so the producer might have chosen to reduce the pay of the other stars in the movie.
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Which agency did Congress create in the 1930s to reduce information costs in financial markets?
A) FDIC B) SEC C) Federal Reserve D) Consumer Financial Protection Agency
Economic freedom:
a. is the right to own property. b. means not having to pay taxes. c. is absent in rich countries. d. affects only poor people. e. is the ability to engage in voluntary trade.