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Question 1
0 out of 2 points
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| Opportunistic behavior on the part of the employer is possible because:Answer| | | | | Selected Answer:| employees often reduce their effort level if they are important to the company.| Correct Answer:| contracts are often incomplete and leave room for implicit understandings between the two parties.|

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Question 2
0 out of 2 points
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| In long-term job attachments, a worker’s wage:Answer| | | | | Selected Answer:| always falls below his productivity.| Correct Answer:| is lower than his productivity at the beginning, then equals it, and then exceeds the same.|

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Question 3
0 out of 2 points
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| _____ is an example of specific human capital.Answer| | | | | Selected Answer:| A PhD in astrophysics|
Correct Answer:| On-the-job learning for a sales executive|
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Question 4
2 out of 2 points
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| _____ allow an individual to buy a company’s stock at a pre-determined price on or after a certain future date.Answer| | | | | Selected Answer:| Options|
Correct Answer:| Options|
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Question 5
0 out of 2 points
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| Lisa’s hourly pay increases from $8 to $10 as her performance improves. We can conclude that:Answer| | | | | Selected Answer:| her marginal cost of leisure declines.| Correct Answer:| her opportunity cost of leisure increases.|

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Question 6
2 out of 2 points
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| Options are less than perfect as instruments to induce better performance because:Answer| | | | | Selected Answer:| executives often take risky decisions to raise the value of their options.| Correct Answer:| executives often take risky decisions to raise the value of their options.|

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Question 7
2 out of 2 points
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| Influence cost is a type of _____ incurred while filling positions that have similar responsibilities but carry different pay.Answer| | | | | Selected Answer:| deadweight loss|
Correct Answer:| deadweight loss|
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Question 8
0 out of 2 points
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| Over the long run, migration by workers to higher-wage regions:Answer| | | | | Selected Answer:| increases wages further in those regions.| Correct Answer:| allows wages to equalize across regions.|

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Question 9
2 out of 2 points
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| In competitive markets, the elasticity of labor supply is:Answer| | | | | Selected Answer:| directly proportional to time elapsed since a wage change.| Correct Answer:| directly proportional to time elapsed since a wage change.|

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Question 10
2 out of 2 points
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| A competitive firm hires workers as long as:Answer| | | | | Selected Answer:| value of marginal product of labor is greater than the wage rate.| Correct Answer:| value of marginal product of labor is greater than the wage rate.|

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Question 11
2 out of 2 points
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| Which of the following assumptions is made while determining equilibrium wage and labor employed in the economy?Answer| | | | | Selected Answer:| All person-hours of labor are treated as identical.| Correct Answer:| All person-hours of labor are treated as identical.|

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Question 12
0 out of 2 points
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| Which of the following will have a downward impact on efficiency wages?Answer| | | | | Selected Answer:| High equilibrium wage rate|
Correct Answer:| Low monitoring costs|
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Question 13
0 out of 2 points
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| Which of the following is a cost borne by an employee?Answer| | | | | Selected Answer:| The cost of extra work done by existing employees due to an unfilled position| Correct Answer:| The cost incurred in looking for alternative job opportunities|

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Question 14
0 out of 2 points
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| Andrea invests $20,000 in tuition fees for her three years of college education. Had she...
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