In the principal-agent relationship, the agent is
A) the owner of a resource that has hired another party to act on his behalf.
B) the person who is placed in control over resources that are not his own and agrees to compensate the resource owner in the event of outcomes that do not satisfy the resource owner.
C) the person who is placed in control over resources that are not his own, with a contractual obligation to use these resources in the interests of some other party.
D) the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf.
C
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To assist pineapple growers in Hawaii, the U.S. government decides to limit the number of pineapples allowed into the country that are grown in Central American countries
Such a restriction prevents many transactions from occurring, and results in opportunity loss which is called a(n) A) import deficit. B) deadweight loss of a quota. C) rent seeking loss. D) non-cooperative surplus.
If the price of hair styling increases, then
A) hair styling salons hire fewer workers but makes more profit. B) hair stylists demand an increase in wages and the salons hire fewer workers. C) the value of marginal product of each hair stylist increases and the demand curve for hair stylists shifts leftward. D) the value of marginal product of each hair stylist increases and the demand curve for hair stylists shifts rightward.
Inventory reductions are a signal indicating that
A. the economy is close to disaster. B. the Dow Jones Industrial Average will fall. C. manufacturers need to increase production. D. producers need to lower prices.
Despite some problems with equating GDP with economic well-being, higher real GDP per person does imply greater economic well-being because it tends to be positively associated with:
A. poverty, depletion of nonrenewable resources, and congestion. B. crime, pollution, and economic inequality. C. unemployment, availability of goods and services, and better education. D. better education, health and life expectancy.