To keep employees from shirking, invest in greater monitoring
a. when monitoring is expensive relative to its benefits
b. especially when monitoring is not very efficient
c. when employees respond well to incentive contracts
d. when incentives fail to solve either moral hazard and adverse selection problems with employees
d
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Suppose that the equilibrium price and quantity of new houses both increase. Which of the following could be a cause of this change?
A) The wage paid carpenters who build new houses might have risen. B) A technological advance in framing a new house might have occurred. C) The rent for nearby apartments might have fallen. D) More home buyers might have moved into the area. E) The cost of wood framing used to build houses might have fallen.
If endogenous growth models are correct, a lower rate of growth in the long run could occur as a result of which of the following?
A) a lower rate of saving B) a lower rate of depreciation C) a redefinition of depreciation D) a redefinition of the steady state E) none of the above