If Both Parties Are Risk Neutral,then

question 34

Multiple Choice

If both parties are risk neutral,then

• A) there will be a larger number of possible voluntary agreements that the parties may reach.
• B) the parties each prefer a certain outcome to an uncertain outcome, if the expected gains are equal.
• C) the contract zone will reach its minimal size.
• D) their utility functions will be concave.

---

Definitions:

Affirmative Action

Programs intended to correct racial, gender, or other imbalances in the workplace.

Reasonable Pay

Compensation for employment that is fair and commensurate with the job responsibilities, skill level required, and market rates.

Incompetence

A lack of ability, skill, or qualifications to perform a task or duty to a required standard.

Termination Of Employment

The end of an employee's duration with an employer, which can be voluntary or involuntary.