Many professional sports athletes have incentive clauses in their contracts. These indicate that
A) the team owner has asymmetric information.
B) the athlete might engage in moral hazard, which the team owner wishes to avoid.
C) the athlete might engage in adverse selection, which the team owner wishes to avoid.
D) the athlete has stronger negotiators.
B
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If a proportion of traded goods (such as oil) are priced in a foreign currency, the real exchange rate becomes:
a. lower. b. higher. c. less responsive to changes in the nominal exchange rate. d. more responsive to changes in the nominal exchange rate.
The above table shows production combinations on a country's production possibilities frontier. Which of the following points signifies efficient production?
A) 0 units of good X and 40 units of good Y B) 3 units of good X and 25 units of good Y C) 10 units of good X and 16 units of good Y D) 12 units of good X and 1 unit of good Y