Which of the following is not a problem in owner-manager or principal-agent conflicts?
A. Identical time horizons
B. Differential risk exposure
C. Choice of effort
D. Perquisite taking
Answer: A
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Last year country A had a nominal GDP of $600 billion, a GDP deflator of 150 and a population of 40 million. Country B had a nominal GDP of $720 billion, a GDP deflator of 120 and a population of 50 million. From these numbers which country is likely to have had the higher standard of living?
a. Country A because it had the higher nominal GDP per person. b. Country B because it had the higher nominal GDP per person. c. Country A because it had the higher real GDP per person. d. Country B because it had the higher real GDP per person.
A bank's required reserves may be held in which two forms?
A. Coins and gold B. Vault cash and deposits at the Fed C. Vault cash and gold D. Deposits at the Fed and gold
Marginal cost
A. Is the change in total cost associated with a one-unit increase in production. B. Is the change in total output from hiring one more factor of production. C. Is the change in the total cost when hiring one more factor of production. D. Falls when there are diminishing returns.
The table above gives the total cost information for Hank and Helen's cherry farm. They sell their cherries in a perfectly competitive market, where the price is $6.00 per pound. If Hank and Helen produce and sell 5 pounds of cherries, what is their total revenue?
Select one: a. $30 b. $6 c. $20 d. $28