Refer to Figure 9-2. The increase in domestic producer surplus as a result of the tariff is equal to the area

Francis Crawford recently received a 20 percent wage increase and desires to work less. We can conclude that at his current wage his supply of labor curve

A) has a negative slope. B) is vertical. C) has a positive slope. D) is U-shaped.

If an agent is risk neutral and a principal is risk averse, which of the following contracts would be efficient in risk bearing?

A) A fixed fee is paid to the agent. B) A fixed fee is paid to the principal. C) An hourly rate is paid to the agent. D) The agent enjoys a share of the profit.