If the marginal rent cost of moving from Apartment 1 to Apartment 2 is -$60 and marginal commuting cost of moving from Apartment 1 to Apartment 2 is $40:
A) moving from Apartment 1 to 2 will cost the renter $60 more in rent and $40 more in commuting.
B) moving from Apartment 1 to 2 will save the renter $60 more in rent and $40 more in commuting.
C) moving from Apartment 1 to 2 will save the renter $60 in rent but cost $40 more in commuting.
D) moving from Apartment 1 to 2 will cost the renter $60 more in rent but save $40 in commuting.
C
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Suppose the probability of an employee being caught shirking, q, is a function of the employer's monitoring, M, such that q = M/100
If workers must put up a $1,000 bond and the gain to each worker from shirking is $100, what is the employer's optimal level of monitoring that is just sufficient to discourage shirking?
Refer to the diagram where curves (a) through (e) are for five different countries. The Gini ratio is lowest in country:
A. a.
B. b.
C. c.
D. e.