In order to have a principal agent problem, there always must be
a. A market economy
b. A dictator and a subordinate
c. The principal has more information than the agent
d. The principal and agent have different goals
e. Both c and d are correct
E
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A bond's internal rate of return is also known as its:
A. coupon. B. payback period. C. duration. D. yield to maturity.
Which of the following is the best example of capital?
A. a family buying a newly produced home B. a shoe store adding to its inventories C. a ship used to carry oil across the ocean D. the production and sale of a new delivery van for UPS
Refer to the graph shown. The equilibrium price for the monopolistically competitive firm represented is:
A. $6. B. $4. C. $10. D. $7.
For a large country, replacing imports with domestic goods can result in
A. a more efficient allocation of resources based on comparative advantage. B. improvement in the country's terms of trade. C. a decrease in the price of its exports. D. an increase in the world price of its imports.