What causes employers or employees to behave opportunistically?
Incompleteness of contracts give both the employer and the employee potential incentives
to act opportunistically, because each knows it will cost the other to form a new relationship that replaces their current one. In reality, however, employment often lasts for decades. Although unwritten, an employment contract can be enforced by the employer's reputation.
Economics
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Consumption expenditure is the payment by households for consumption of
A) goods but not services. B) services but not goods. C) goods and services. D) services and for saving.
Economics
In the figure above, an increase in income would result in the budget line
A) making a parallel shift toward point a. B) making a parallel shift toward point c. C) becoming flatter. D) becoming steeper.
Economics