Multiple Choice
If good salespeople are extremely risk averse,then a choice between a fixed-fee contract and a contingent contract
A) avoids a moral hazard.
B) will result in all job candidates choosing the contingent contract.
C) will result in an efficient contract.
D) may not be a good screening device.
Correct Answer:
Verified
Correct Answer:
Verified
Q97: In a principal-agent problem,if the contract implies
Q98: Many professional sports athletes have incentive clauses
Q99: Sam hires an attorney to present a
Q100: What is one potential problem with nationalized
Q101: A firm uses an efficiency wage scheme
Q102: If the principal has full information,production efficiency
Q104: In the presence of asymmetric information,the only
Q105: What is one potential problem with offering
Q106: A trade-off typically exists between incurring a
Q107: Suppose a plaintiff hires a lawyer to