Multiple Choice
A firm uses an efficiency wage scheme to deter workers from shirking,which is detected 10% of the times.Suppose a risk-neutral worker that has a reservation wage of $500.The efficiency wage paid by this firm is $7,000.What is the industry ongoing wage?
A) $1,000
B) $5,000
C) $1,500
D) $2,000
Correct Answer:
Verified
Correct Answer:
Verified
Q51: In professional golf,a tournament winner might win,say,$1
Q52: In a store that sells souvenirs,suppose an
Q53: One reason that lawyers might prefer a
Q54: If an agent is risk neutral and
Q55: Suppose the probability of an employee being
Q57: Assume a lawyer signs a contingency fee
Q58: Rents for stores at shopping malls are
Q59: With full information any contract will lead
Q60: In 2008,foreclosures reached a record high.Which of
Q61: Wage reduction policies are less common than