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Markets Often Provide Higher-Powered Incentives Than Firms When It Comes

Question 40

Multiple Choice

Markets often provide higher-powered incentives than firms when it comes to employee motivation for economic transaction because:


A) Transacting in the market provides a higher degree of job security.
B) Markets provide incentives like IPOs for individual work efforts.
C) Transacting in the market requires less time and effort than working for a firm.
D) There is typically less economic risk to an individual when they are no longer bound to a firm.

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