The evidence from the gift exchange game literature suggests that:
A) Labour contracts based on mutual trust and reciprocity elicit similar levels of effort as those based on explicit rewards and penalties.
B) Labour contracts based on mutual trust and reciprocity elicit much less effort than those based on explicit rewards and penalties.
C) Labour contracts based on mutual trust and reciprocity lead to massive amounts of shirking by the workers and such contracts are effectively useless.
D) Labour contracts that appeal to the intrinsic motivation of workers lead to massive amounts of shirking by the workers and such contracts are effectively useless.
Correct Answer:
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