Question
The principal-agent model's prediction that higher stakes (greater incentives) will lead to higher effort is driven by - A) The agent's general dislike of work
The principal-agent model's prediction that higher stakes (greater incentives) will lead to higher effort is driven by -
A) The agent's general dislike of work
B) The assumption that the marginal cost of effort is increasing
C) The agent's aversion toward income risk
D) The agent's ambition
Multiple choice. Pls provide explanation
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International Economics Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz
11th Edition
134519574, 9780134521046 , 978-0134519579
