Agents Prefer a Behavior-Based Contract When

question 37

Multiple Choice

Agents prefer a behavior-based contract when

• A)they are inclined to take more risks.
• B)job outcomes are more measurable.
• C)they desire higher compensation.
• D)outcome uncertainty is high.
• E)jobs become less programmable.

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Definitions:

Iceland

An island country in the North Atlantic, known for its dramatic landscape of volcanoes, geysers, hot springs, and lava fields.

Export Goods

products or services that are produced domestically but sold to buyers in other countries.

Acquire Dollars

The process of obtaining U.S. currency, which can involve exchanging foreign money, earning it, or investing.

Living Standards

A measure of the wealth, comfort, material goods, and necessities available to a person, group, or society.