Stock options as a form of payment are designed to:
A. evade the equal-pay-for-equal-work provisions of the federal antidiscrimination law.
B. boost the overall earnings of minimum-wage workers.
C. offset monopsony.
D. address the principal-agent problem.
Answer: D
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The Federal Reserve has:
A. made some booms and recessions worse rather than better. B. a good track record of only making booms and recessions better. C. made some recessions worse but generally makes booms better. D. made some booms worse but generally makes recessions better.
In constructing the Human Development Index, high income levels are given less than proportionate weight because
a. Items bought by rich people are luxuries, not necessities. b. United Nations bureaucrats are prejudiced against the rich. c. Dollars received by rich people may have a lower marginal utility than dollars received by poor people. d. Items bought by rich people create more pollution than those bought by the poor. e. All of the above are valid reasons.