Tournaments Are Useful for Rewarding Worker Effort Whenever

question 137

Multiple Choice

Tournaments are useful for rewarding worker effort whenever:

• A) external factors, such as the quality of the good and the state of the economy, have little effect on workers' success.
• B) workers are myopic and unaware that external factors play a significant role on sales.
• C) workers are utility maximizers primarily concerned about their reputation in the community.
• D) external factors, such as the quality of the good and the state of the economy, do affect workers success.

---

Definitions:

Expected Flow

The anticipated movement or transfer of resources, information, or goods in a system over a period.

Future Benefits

The anticipated advantages or improvements in condition and well-being that are expected to occur in the future as a result of certain actions or investments.

Investment Decisions

Choices made by individuals or entities regarding where to allocate resources with the expectation of generating a positive return in the future.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage.