The following is NOT an example of a potential monitoring solution to moral hazard
a. blocking social network sites on company computers
b. closed circuit TVs throughout a warehouse
c. GPS tracking devices in repair trucks
d. requiring physicians to be 'board certified'
QUESTION 2A firm is thinking of hiring an additional worker to their organization who they believe can increase total productivity by 100 units a week. The cost of hiring him or her is 1500 per week. If the price of each unit is 20,
a. the MR of hiring the worker is 2000
b. The MC of hiring the worker is 1500
c. The firm should hire the worker since MB>MC
d. All the above
QUESTION 3The following is NOT an example of a potential monitoring solution to moral hazard
a. blocking social network sites on company computers
b. closed circuit TVs throughout a warehouse
c. requiring a kitchen remodeling contractor to be 'bonded'
d. listening in on call center conversations
QUESTION 4A manager of a clothing firm is deciding whether to add another factory in addition to one already in production. The manager would compare
a. The total benefits gained from the two factories to the total costs of running the two factories.
b. The incremental benefit expected from the second factory to the total costs of running the two factories.
c. The incremental benefit expected from the second factory to the cost of the second factory
d. The total benefits gained from the two factories to the incremental costs of running the two factories.
QUESTION 5The following is NOT an example of a potential monitoring solution to moral hazard
a. blocking social network sites on company computers
b. rejecting a job candidate that fails to show up at the allotted interview time
c. GPS tracking devices in repair trucks
d. listening in on call center conversations
QUESTION 6When economists speak of marginal, they mean
a. Opportunity
b. Scarcity
c. Incremental
d. Unimportant
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