If a Firm Has Established Monitoring Devices That Have a 50

question 18

Multiple Choice

If a firm has established monitoring devices that have a 50% chance of detecting shirking,and an employee gains $5,000 from shirking,the employer can deter shirking by having employees post a bond equal to

• A) $2,500.
• B) $5,000.
• C) $10,000.
• D) $50,000.

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Definitions:

Income Elasticity

A measure of how much the demand for a good or service changes with a change in the consumer's income.

Per Capita

A statistical measure that represents the average per person of a particular indicator, such as income or GDP.

Disposable Income

The sum of funds households can allocate for expenditure and saving once income taxes are deducted.

Barbara Streisand CDs

Compact discs containing music recorded by Barbara Streisand, an American singer, actress, and filmmaker.