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    Exam 16: Asymmetric Information
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    Use the Following to Answer Question
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Use the Following to Answer Question

Question 64

Question 64

Multiple Choice

Use the following to answer question:
Figure 16.4 Use the following to answer question: Figure 16.4   -(Figure 16.4)  If the principal chooses a flat salary, the agent will _____ and earn a payoff of _____. A)  shirk; 150 B)  shirk; 75 C)  work hard; 133 D)  work hard; 100
-(Figure 16.4) If the principal chooses a flat salary, the agent will _____ and earn a payoff of _____.


A) shirk; 150
B) shirk; 75
C) work hard; 133
D) work hard; 100

Correct Answer:

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