Question 1

Individuals cannot be excluded from consuming a public good.

Accepted Answer

A) True 
 B)False

Question 2

If initially an individuals' compensation is less than their productivity but the reverse is true, the individual

Accepted Answer

A) will free-ride late in their career. 
B) has an incentive to leave the firm. 
C) has an incentive to stay with the firm. 
D) none of these choices. 
A) will free-ride late in their career. 
B) has an incentive to leave the firm. 
C) has an incentive to stay with the firm. 
D) none of these choices.

Question 3

Businesses often center production activities around

Accepted Answer

A) agents. 
B) teams. 
C) principals. 
D) principals and agents. 
A) agents. 
B) teams. 
C) principals. 
D) principals and agents.

Question 4

If a firm invests a lot in new employees, it is likely to

Accepted Answer

A) forward load compensation. 
B) pay all the costs of the new training. 
C) backload compensation. 
D) none of these choices. 
A) forward load compensation. 
B) pay all the costs of the new training. 
C) backload compensation. 
D) none of these choices.

Question 5

If team members are able to evaluate other team members, then free riding can be minimized.

Accepted Answer

A) True 
 B)False

Individuals cannot be excluded from consuming a public good.

If initially an individuals' compensation is less than their productivity but the reverse is true, the individual

Businesses often center production activities around

If a firm invests a lot in new employees, it is likely to

If team members are able to evaluate other team members, then free riding can be minimized.

Economics and Management

The Power of Markets and the Wealth of Nations

Spontaneous Order, Markets, and Market Failure

Spontaneous Order and the Firm

Organization of the Firm

When Other Firms Dont Respond

When Other Firms React

The Entrepreneur and the Market Process

Strategies With Respect to Government

What Should the Firm Do

Demand and Revenue Management

Costs

The Mechanics of Profit Maximization

Pricing

The Knowledge Economy

The Corporate Form and the Cost of Capital

Internal Markets

Measuring Economic Profit

The Firm in a National and a Global Setting

Strategy Myths

Filters

Exam 6: Market Failures and Incentive Issues Inside the Firm

Individuals cannot be excluded from consuming a public good.

If initially an individuals' compensation is less than their productivity but the reverse is true, the individual

Businesses often center production activities around

If a firm invests a lot in new employees, it is likely to

If team members are able to evaluate other team members, then free riding can be minimized.

Economics and Management

The Power of Markets and the Wealth of Nations

Spontaneous Order, Markets, and Market Failure

Spontaneous Order and the Firm

Organization of the Firm

When Other Firms Dont Respond

When Other Firms React

The Entrepreneur and the Market Process

Strategies With Respect to Government

What Should the Firm Do

Demand and Revenue Management

Costs

The Mechanics of Profit Maximization

Pricing

The Knowledge Economy

The Corporate Form and the Cost of Capital

Internal Markets

Measuring Economic Profit

The Firm in a National and a Global Setting

Strategy Myths

Filters