If an Additional Dollar Spent on Monitoring Would Reduce Shirking

question 31

Multiple Choice

If an additional dollar spent on monitoring would reduce shirking by 10 minutes,then the firm will increase the worker's wage by $1 if this caused

• A) shirking to increase by less than 10 minutes.
• B) shirking to decrease by more than 10 minutes.
• C) shirking to decrease by less than 10 minutes.
• D) monitoring to become unnecessary.

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Definitions:

Sales Tax

A tax imposed by governments on sales of goods and services, typically a percentage of the sale price paid by the consumer.

Income Rises

An increase in the amount of money received by an individual or household, which can affect purchasing power and economic status.

Proportional Tax

A taxation system where the tax rate remains constant regardless of the amount subject to tax, leading to a uniform tax rate for all taxpayers.

Diagram

A diagram is a simplified drawing showing the appearance, structure, or workings of something, typically used for explanation or clarification.