EconoQuestionsGG2a - Thank you for your help. Question 1 If...

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Thank you for your help. Question 1 If a prospective employee is not offered her reservation utility or reservation wage, then she will: a) tend to look for another job or withdraw from the labor market b) seek a larger benefit package c) use the job as the basis for a career, assuming that wages will increase beyond the marginal revenue product over time d) accept the job because a wage below the reservation utility is very attractive Question 2 In the benchmark competitive case, the firm will expand the hiring of employees until the marginal revenue product is: a) less than the market wage rate b) equal to the market wage rate c) greater than the market wage rate d) the universe of the market wage rate Question 3 An efficient allocation of risk among employees and owners must: a) take into account that performance-based incentives are the sole important component of an employee's salary b) take into account that attitudes toward risk differ among different people c) recognize that inefficiency is inherent to the process d) recognize that pooling of risks is never appropriate Question 4 Dan Heath is the majority owner of Plain Truth Advertising. He hires Shirley Downs as his chief executive officer (CEO). In terms of an economic model, Mr. Heath is the __________ and Ms. Downs is the __________. a) agent; principal b) principal; agent c) principal; intermediary d) agent; intermediary Question 5 When employees are offered incentives to find new customers but the aggregate economy is so weak (in recession) that the firm loses consumers, then the incentive plan: a) is just what was needed in hard times b) must be adjusted to make employees work harder in difficult times c) suffers from the problems of external risks that employees cannot overcome d) must be adhered to no matter what Question 6 If a firm in a competitive labor market offers less than the market wage rate if it will: a) be able to attract a large number of employees because the marginal revenue product is low b) find that it has broken a federal wage law c) attract too few employees d) find that the supply is greater than the demand Question 7 The value of human capital is determined by: a) special team of experts in each college and university b) a ranking system of the relative value of different sorts of education to society c) the forces of supply and demand in the market d) an investment board at the New York Stock Exchange Question 8 The salary gains from general training in human capital tend to go to the:
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This note was uploaded on 01/05/2012 for the course 101 melissa jo taught by Professor Acc101 during the Spring '11 term at Aarhus Universitet.

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EconoQuestionsGG2a - Thank you for your help. Question 1 If...

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