A firm uses an efficiency wage scheme to deter workers from shirking. A risk-neutral worker will NOT shirk if
A) the expected loss from being fired is larger than or equal to the gain from shirking.
B) the expected loss from being fired is smaller than the gain from shirking.
C) the gain from shirking is positive.
D) the expected loss from being fired is zero.
A
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An analysis of IBM's pricing decisions would be classified as a macroeconomic study
a. True b. False Indicate whether the statement is true or false
Trade creates value by
a. moving goods from people who value the goods less to people who value the goods more. b. permitting trading partners to expand output through specialization in areas where they each have a comparative advantage. c. permitting trading partners to expand output through the adoption of mass production methods. d. all of the above.