Under a profit-sharing compensation scheme, the manager will:

If government is to allocate resources efficiently, _____

a. competition among local governments should be limited in scope b. local governments should transfer powers to state governments whenever possible c. public goods should always be provided by the federal government d. public goods should be devolved to local governments whenever feasible

Consider an investment with the following payoffs and probabilities: State of the Economy Probability Return Stability .50 1,000 Good Growth .50 2,000 Determine the expected return for this investment

a. 1,300 b. 1,500 c. 1,700 d. 2,000 e. 3,000