You rent a DVD of The Dark Knight Rises. The rental is for seven days and you watch the movie on the first day. You tell a friend about the film and your friend asks to come over and watch the movie with you before it is due back
What is your opportunity cost if you decide to watch the movie a second time instead of going to a football game?
A) the entire cost of the movie rental, since you have already watched the movie
B) one half the rental cost, because you have already watched the movie one time
C) The answer depends on how much you liked the movie in the first place.
D) the football game you forego by watching the movie again
D
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A large part of the principal-agent problem stems from the desire of
A) agents to work hard. B) agents to avoid working. C) principals to work hard. D) principals to avoid working.
In the case of a negative externality,
A. marginal external costs are greater than marginal private costs. B. marginal external costs are less than marginal private costs. C. marginal external benefits are greater than marginal private benefits. D. marginal external benefits are equal to marginal private costs. E. none of the above
When all variables start out at their long-run equilibrium levels, the most important determinant of long-run swings in nominal exchange rates is
A) a shift in relative money supply levels. B) a shift in relative money supply growth rates. C) a change in relative output demand. D) a change in relative output supply. E) a change in relative inflation rates.
Stock options have been shown to not align the work of the CEO with the interests of shareholders
Indicate whether the statement is true or false