davenport econ625 week 3 quiz

Which of the following is not a principal/agent relationship?

Which of the following management actions reflects agency problems due to the fact that information held by the agent is hard to observe?

What term describes situations in which the aspects of the agent’s action that are important to the principal cannot be observed?

What term describes situations in which aspects of the productive environment that are important to the principal cannot be observed?

Which of the following solutions has addressed coordination problems in the tin market?

What term best describes a payment above and beyond the expected outcome of a gamble which must be offered to a risk-averse individual to willingly accept the gamble?

Which of the following terms best describes a contract that guarantees an agent some payment, but provides enough incentive so that the agent does not shirk?

Which of the following statements is least true regarding the use of incentive pay for sales employees?

Which of the following terms best describes the principle stating that when allocating effort among a variety of tasks, employees will tend to exert more effort toward those tasks that are rewarded?

What term refers to the practice in a multidivisional firm where orders from other parts of a company are rushed to be filled at the end of each month (allowing divisions filling the orders to recognize revenue but cause inventory problems)?