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B principals and agents are in an adversarial role

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B. principals and agents are in an adversarial role, sharing no common interests. C. principals pursue some of their own objectives that may conflict with the objectives of the agents. D. agents pursue some of their own objectives that may conflict with the objectives of the principals. AACSB: Analytical Skills Blooms: Knowledge Learning Objective: 13-6 McConnell - Chapter 13 #156 Topic: Pay and performance 157. Which one of the following best exemplifies the principal-agent problem in the employer-employee relationship? A. A worker takes 20 minute coffee-breaks although the employer allots only 15 minutes for this purpose. B. A worker is on the job 50 hours per week although only 40 hours are required for promotion. C. A worker opts for early retirement in response to the firm's incentive plan. D. A worker's productivity is independent of the wage paid. AACSB: Reflective Thinking Skills Blooms: Application Learning Objective: 13-6 McConnell - Chapter 13 #157 Topic: Pay and performance
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158. In the context of labor markets, shirking refers to: A. the nonmonetary disadvantages of certain jobs. B. the neglecting or evading of work. C. the elimination of monitoring costs. D. any scheme where pay is directly related to worker output. AACSB: Analytical Skills Blooms: Knowledge Learning Objective: 13-6 McConnell - Chapter 13 #158 Topic: Pay and performance 159. Traveling sales representative Harold Hill only calls on clients four days a week rather than the five days expected by his employer. This is an example of: A. equalizing differences. B. a nonmonetary job disadvantage. C. shirking. D. the free-rider problem. AACSB: Reflective Thinking Skills Blooms: Application Learning Objective: 13-6 McConnell - Chapter 13 #159 Topic: Pay and performance 160. The idea of efficiency wages is that: A. the wages of each type of labor must be proportionate to their marginal products. B. the wages of each type of labor must be equal to their marginal products. C. firms might get greater work effort by paying above-equilibrium wage rates. D. workers are more diligent when paid below-equilibrium wages. AACSB: Analytical Skills Blooms: Knowledge Learning Objective: 13-6 McConnell - Chapter 13 #160 Topic: Pay and performance 161. Paying an above-equilibrium wage rate might reduce unit labor costs by: A. permitting the firm to attract lower-quality labor. B. increasing the cost to workers of being fired for shirking. C. increasing voluntary worker turnover. D. increasing the supply of labor. AACSB: Reflective Thinking Skills Blooms: Understanding Learning Objective: 13-6 McConnell - Chapter 13 #161 Topic: Pay and performance 162. One implication of efficiency wages is that: A. labor turnover is reduced as wages are reduced.
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B principals and agents are in an adversarial role sharing...

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