In order to avoid principal-agent problems, McDonald's uses all but one of the following franchising tactics. Which is the exception?
a. It does not advertise for franchisees.
b. Franchisees must put up 40 percent of the investment themselves.
c. Franchisees must undergo a preliminary training period, followed by a 12- to 18-month training program.
d. Franchisees must already have another fast-food restaurant franchise.
e. Franchisees are required to work full-time daily in their restaurant.
D
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Public utilities are either government-owned or government-regulated firms
a. True b. False
The term "near monies" refers to which of the following? a. Savings and small time deposits, which (unlike currency and checkable deposits) are not immediately available as money in a transaction. b. Mexican pesos and Canadian dollars – the money used by our nearest neighbors
c. Counterfeit money that closely approximates the appearance of real money. d. None of the answers above are correct.
Which of the following happens as a result of a decrease in income? a. The budget line becomes steeper. b. The budget line shifts inward. c. The budget line shifts outward
d. The budget line becomes flatter.
How is producer surplus changed by the introduction of tariffs on imported shoes as shown in Exhibit 1?
a. loss of areas c, d, e, and f
b. loss of areas d and e
c. gain of area c
d. gain of area g