There is less of a principal-agent problem between managers and apple pickers than between managers and secretaries because
a. apple pickers naturally work harder
b. secretaries get paid less than their worth
c. productivity is easier to measure in apple picking than in secretarial services
d. a secretary's marginal product is easier to estimate than an apple picker's
e. managers can watch apple-pickers more closely than they can secretaries
C
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Which of the following is an assumption made while constructing a production possibilities frontier [PPF]?
a. Dynamic technological know-how b. Flexible resource quality c. Fixed resource quantity d. Full and efficient use of resources e. Flexible money supply
Related to the Economics in Practice on page 203: Licenses to sell hot dogs in New York City's Central Park are considerably higher than the licenses to sell hot dogs in the rest of the city. Which of the following statements regarding the above information is true?
A. Despite this, hot dogs are less expensive in New York's Central Park than in the rest of the city. B. Due to this, hot dogs are more expensive in New York's Central Park than in the rest of the city. C. Despite this, hot dogs sell for the same price in New York's Central Park as they do in the rest of the city because the hot dog market is perfectly competitive. D. Despite this, hot dogs sell for the same price in New York's Central Park as they do in the rest of the city because the city regulates the price of hot dogs.