A risk-averse manager is hired to run a firm for shareholders. If shareholders cannot observe the manager's effort, which would be the best employment contract?
a. a high-powered incentive contract to elicit maximum effort.
b. a fixed salary.
c. a moderately powered incentive scheme that elicits some effort without exposing the manager to too much risk.
d. an incentive scheme that provides maximum incentives and maximum insurance.
c
Economics
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You pay $15 for an all-you-can-eat buffet. The food isn't so good, but definitely edible. When you finish eating, what is the marginal value of the last bite of food you consumed?
A) zero B) $15 C) positive D) negative
Economics
If the nominal gross domestic product (GDP) for a particular year is $4 trillion and the real GDP for that year is $3 trillion, then the GDP price index is 133
a. True b. False Indicate whether the statement is true or false
Economics