In a World of Perfect Certainty, Sharecropping Would Be Less

question 16

Multiple Choice

In a world of perfect certainty, sharecropping would be less efficient than a farm owner working his own farm because

• A)sharecroppers receive only half of their marginal product.
• B)paying a worker a wage gives him or her an incentive to shirk.
• C)sharecroppers are exploited by landlords.
• D) renting farmland concentrates risk on the renters.
• E) All of the above.

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